I filed a CPSC report and a few days later I get an E-mail from Microsoft asking for photos. See below for the reply after they reviewed the photos.
Never again will I purchase a Microsoft PC or Tablet.
Bob
"Thank you for your reply and pictures. Microsoft stands firmly behind the quality and reliability of our Surface family of devices. Unfortunately, since your device is no longer supported, it is therefore not eligible for service.
There is no inherent risk or safety concern associated with these expanded batteries. With that said, like alkaline and other batteries, the lithium ion batteries used in Surface devices contain materials that can injure skin, eyes, and lungs if punctured.
We recommend that customers not continue to use a device with an expanded battery, except where the Surface operates only on battery power and for the purposes of data transfer. Surface devices with expanded batteries should not be connected to AC power as it could possibly lead to rupture.
We would suggest that you discontinue the use of the device and dispose of the damaged Surface per your local electronic waste process.
Thank you,"