I think the quality control at the Baby Lock manufacturing place has problems. I've heard that both the original Jazz, and the new Jazz 2 have had various problems. For the most part, probably most of the machines are good, but some are slipping through, like yours and mine.
Cherry Berry Quilts repair just returned my email. I take it in anytime Monday through Friday, and get the work order done. I have to leave the machine for two to three weeks, then go back. My nearest repair shop is sixty miles one way, but that's better than having to go another 20 or so to the next location.
I just hope they can get the machine to do free motion quilting/embroidery movement with the feed dogs down like a normal
machine should do. Though I was told by another person that these purely manual machines (no computers) usually require adjustments to be useful for FMQing. Not sure how accurate that is, but I know that my Singer Quantum Stylist 9960 does FMQing just fine. It has automatic tensioning.