Did you try it with a different hoop? The hoop can be faulty as well. Is the embroidery properly centered inside the hoop?
I have a much older Pfaff than you (Pfaff Creative 2134) but the start-up sequence seems the same.
I'd try with another embroidery and another hoop. I've misused and treated my embroidery unit quite roughly through the years and I have to tell you that it seems to hold up pretty well.