Well it seems it is a hardware fault burning smell and then it failed to even access APX so its return it for a replacement.
Edit: Got a new Tablet under replacement, So now its time to find away to kill the OTA updater.
I suggest if your still on 4.2.2 is for now to stay there as 4.2.2 has a unlocked Bootloader by default and is not SBK signed.
SBK Signed is the reason for some of us are getting bricks when using the likes of super tools to update to 4.4.2. SBK signing came with the OTA 4.3 which is why when on 4.3 we do a fastboot oem unlock why we get the red text about Warrenty. Once SBK signing is on thats it Nvflash then talks when flashing in a encrypted format and without the SBK AES128bit keys nvflashing the wrong APX will result in SBK and DK showing fused which then bricks the tablet, this intern causes the reboot loop brick.
So if you on 4.3 and want to go back to 4.2.2 you can't and its the same with 4.4.2 to 4.3 it will brick your device if your blob.bin and the sbk is not correct.
Also in 4.2.2 /System partition there is 178mb free space yet on 4.3 and 4.4.2 there is only 17.8mb free space after OS install.
Now to disable OTA's on 4.2.2 we need to find away to disable out right com.nvidia.ota.GCMintentService and com.nvidia.ota.DownoadService as that on 4.2.2 is the OTA updater.
Now i have tried FOTAKill.apk but that doesn't cover the com.nvidia.ota parts at all and using Disable Service.apk doesn't do anything it still runs.
As for the SBK signing which was used in Tegra 2 and 3 products we need to dump the sbk key in a decrypted format so when using nvflash we can use the --sbk <SBK CODE> to flash with.
Now the SBK is unique to each tablet i would think but i will look into that, when i have the time. If your already bricked then the only other thing you can do with your warrenty being void is talk to nvidia like ehfff did.
Now i am going to sign up to Nvidia's Dev area and have a look at
https://developer.nvidia.com/tegra-4-technical-reference-manual see if that sheds some light.
Edit: 2 (Should go Directly to OP first post!!!!!)
To kill the OTA on Android 4.2.2 on the Tegra Note 7 you must chmod the following file TegraOTA.apk .
to do this you must have root which if you have 4.2.2 you should be rooted already by now using the Root_n7.img with the fastboot boot root_n7.img from fastboot.
type the following in order and exactly like this.
$su
# mount -o rw,remount /system
# cd system/app
# chmod 000 TegraOTA.apk
# reboot (if it quits you out of ADB then just use adb reboot)
System Updates is now disabled on your device!