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This error in new printer's happens due to packaging material still inside the printer. I understand that you have checked every nook and corner of the printer fro foreign object but still I would like you to perform the following steps again.
Turn Off the printer, unplug it from the power as well as from computer completely.Then remove all paper from the paper feed unit and blow it out with compressed air a few times. With a flashlight look inside the paper feed to ensure there is nothing obstructing the paper feed mechanism down inside the printer where it is not easily seen.
Next, take moistened Q-tips and clean the rubber rollers in the automatic sheet feeder using it. Then blow some compressed air inside the printer as well to remove excess dust and to dry the rollers.
Holding the printer in both hands , turn it upside down and gently shake it for a few seconds to see if anything falls out of the paper feed area.
Then plug the printer back up and replace it with a fresh, small stack (about 5 pages) of paper.Then try to print again.
If still it doesn't helps then as a last resort you can try forcing a thick paper or fold a A4 piece of paper in half, and then by hand push it through the machine, hopefully this may push any objects out.
After that turn the printer OFF, when it is on, by unplugging it from the power source.Then unplug it from the computer and leave it that way for 10 minutes. Then replace everything back.
Tell me how it goes!
If the previous steps didn't help it verifies an error in LF encoder signal. It is caused due to smearing or scratches on the LF / EJ slit film.LF / EJ slit film and the LF / EJ timing sensor unit needs to be replaced to get everything back to alright.
As your Printer is absolutely new and in warranty. Canon will replace it free of cost.
I know this isn’t going to be the answer you want to hear, and it’s certainly not what I want to tell you. However, I wish to be completely honest with you, so I feel obligated to not give you false hope.
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No problem, you too have a nice weekend!!