Why does my phone say memory full when it is not?

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Windows Central Question

My phone is saying my memory is full, free up some space. It also says that the SD card cannot be read, when it is reading it. Is there a way to reformat the phone, since this phone was sent to me today by AT&T and it is "New"?
 
I hate to say it, but its a software issue. My lumia 950 does the same thing. And also the battery drains rapidly. Really disappointed in this phone. If i could return it I would. I was much happier with my 1020. it at least didnt run out of full battery in a matter of a few hours.
 

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