yes it will reset the bios settings which is the same as resetting your ps3 within the xmb, but not the CMOS values I believe that needs changing unfortunately.
As severusx said you have to send it back. Or hope that someone finds the 3.56 Lv2diag.self, so you could jailbreak it then and get back out of service mode again unlike you can on 3.56.
I had the same thing on a 3.55 and used the E3 reader to re-flash CMOS with no hard drive fitted due to being locked because I messed up the drive and corrupted the drive table.
You have the same fault, your pup can not unpack for install because the temp folder it uses for its swap is locked, not there, or corrupted because of SONY rushing things. Sit tight or send back because jailbreaking is the only way.,