Daly BMS (250A 4s 12V) reading wrong cell voltage for first cell

It's not a reporting issue unfortunately. I set the low voltage disconnect to 2.9v, and the bms switched off when the cell with the faulty voltage reached that value.

Mine responds the same way, when the BMS imagines that the cell with the erroneous reading has gone out of spec it disconnects. I've got a new BMS coming from DALYBMS Store on Ali. They agreed to sell me a new one at 60% off, then refund the old one if I send it back to them. After buying the new one they told me that the old one was purchased too long ago (~6 months) and couldn't refund it after all. I'll contest this through AliExpress when the new one arrives.

Noticed that the cell 1 voltage error changed sign when the bms went from discharging to charging.
Looks like there is some parasitic current feeding from the charge circuit affecting the voltage measurement.
Cell 4 looks like it is compensating the error by undervolting when cell 1 is overvolting.
I could live with the error if it stayed constant and did not lead to the balancer within the bms actually unbalancing my battery.
Will be observing for some time before contacting the supplier with a warranty claim.

Well I have taken a look at my batteries today and the cells are all within 1Mv of each other. I have just let them sit for the past couple of weeks with without any charging or discharging. As I said, I had a significant difference with one cell but never tested that cell with a meter to see if the BMS was at fault. When I charge them again I will monitor what happens.

On the third cycle the bms shut the battery at around half capacity - I managed to see that the voltage of the first cell was off by around 0.5v. Next day however I could only see 0.2v error consistently, which nevertheless was huge. I went and claimed the warranty. Fogstar replaced the bms with no hassle.
The new bms does not have the problem after the three cycles, I only see single digit millivolts as cell difference,

I have this issue to this day, I am going to be replacing mine Daly is junk it seems.