MacBook Pro Late 2016 Kernel Panics (Sierra 10.12.1)

New MacBook Pro 2016 has only been in use for 2 weeks. Kernel Panics frequently when in use and also while trying to reinstall Sierra. I have reset the PRAM yet the problem persists. Any ideas whats going on and how to fix?

Here is the Panic report:

Tue Nov 22 00:34:30 2016

*** Panic Report ***
panic(cpu 0 caller 0xffffff7f98f239bf): nvme: "Fatal error occurred. ID=0x843 ARG1=0x12a3 ARG2=0xae ARG3=0x8e EDD0=0x0 EDD1=0x0 EDD2=0x0 EDD3=0x0 EDD4=0x0 EDD5=0x0 EDD6=0x0 EDD7=0x0. FW Revision=12.93.01\n"@/BuildRoot/Library/Caches/com.apple.xbs/Sources/IONVMeFamily/IONVMeFamily-234.1.16/IONVMeController.cpp:4607
Backtrace (CPU 0), Frame : Return Address
0xffffff81188cbcd0 : 0xffffff8014cf748c 
0xffffff81188cbd50 : 0xffffff7f98f239bf 
0xffffff81188cbe90 : 0xffffff80152c3d20 
0xffffff81188cbf00 : 0xffffff8014d2edea 
0xffffff81188cbfb0 : 0xffffff8014ca6af7 
      Kernel Extensions in backtrace:
         com.apple.iokit.IONVMeFamily(2.1)[B460E2CE-D16E-3C0F-B41F-0E2A84FEB291]@0xffffff7f98f14000->0xffffff7f98f45fff
            dependency: com.apple.driver.AppleMobileFileIntegrity(1.0.5)[DA3A04FC-C0D3-3522-A13F-A7806B90BFAC]@0xffffff7f95e84000
            dependency: com.apple.iokit.IOPCIFamily(2.9)[9356DDF0-3E63-3C8F-B468-D7B5D6EE3174]@0xffffff7f9550c000
            dependency: com.apple.driver.AppleEFINVRAM(2.1)[6F4404D6-8625-35CA-AEB6-6ECD7B64FA52]@0xffffff7f987ae000
            dependency: com.apple.iokit.IOStorageFamily(2.1)[510A2AD8-C127-34AA-A984-95A82C6AC1DA]@0xffffff7f95546000
            dependency: com.apple.iokit.IOReportFamily(31)[3CAF0CDE-3EB5-32C8-91EF-EC5C7CAFBA22]@0xffffff7f95575000

BSD process name corresponding to current thread: kernel_task

Mac OS version:
16A2323a

Kernel version:
Darwin Kernel Version 16.0.0: Mon Aug 29 17:56:10 PDT 2016; root:xnu-3789.1.32~4/RELEASE_X86_64
Kernel UUID: E186AB41-B8FA-31C4-B5A1-EF166929FE46
Kernel slide:     0x0000000014a00000
Kernel text base: 0xffffff8014c00000
__HIB  text base: 0xffffff8014b00000
System model name: MacBookPro13,1 (Mac-473D31EABEB93F9B)

System uptime in nanoseconds: 337012548413
last loaded kext at 34134025132: com.apple.driver.pmtelemetry   1 (addr 0xffffff7f9a56b000, size 73728)
last unloaded kext at 153371507237: com.apple.driver.usb.AppleUSBKDP    1.0 (addr 0xffffff7f95e38000, size 32768)
loaded kexts:
com.apple.driver.pmtelemetry    1
com.apple.iokit.IOUserEthernet  1.0.1
com.apple.driver.AGPM   110.23.7
com.apple.driver.ApplePlatformEnabler   2.7.0d0
com.apple.driver.X86PlatformShim    1.0.0
com.apple.iokit.IOBluetoothSerialManager    5.0.0f18
com.apple.Dont_Steal_Mac_OS_X   7.0.0
com.apple.driver.AppleGraphicsDevicePolicy  3.13.60
com.apple.driver.AppleHDA   276.26
com.apple.driver.AppleOSXWatchdog   1
com.apple.driver.AppleIntelPCHPMC   1.1
com.apple.driver.AppleHV    1
com.apple.driver.AppleThunderboltIP 3.0.8
com.apple.driver.AppleBacklight 170.9.10
com.apple.driver.AppleSMCLMU    208
com.apple.driver.AppleCameraInterface   5.57.0
com.apple.driver.AppleIntelSlowAdaptiveClocking 4.0.0
com.apple.driver.AppleIntelSKLGraphicsFramebuffer   10.1.8
com.apple.driver.AppleMCCSControl   1.2.13
com.apple.nke.webcontentfilter  5
com.apple.driver.DiskImages.ReadWriteDiskImage  444
com.apple.driver.DiskImages.UDIFDiskImage   444
com.apple.driver.DiskImages.RAMBackingStore 444
com.apple.BootCache 39
com.apple.filesystems.hfs.kext  366.1.1
com.apple.AppleFSCompression.AppleFSCompressionTypeZlib 1.0.0
com.apple.AppleFSCompression.AppleFSCompressionTypeDataless 1.0.0d1
com.apple.driver.AppleTopCaseHIDEventDriver 102
com.apple.driver.AirPort.Brcm4360   1100.37.1a16
com.apple.driver.AppleSmartBatteryManager   161.0.0
com.apple.driver.AppleACPIButtons   5.0
com.apple.driver.AppleRTC   2.0
com.apple.driver.AppleSMBIOS    2.1
com.apple.driver.AppleACPIEC    5.0
com.apple.driver.AppleAPIC  1.7
com.apple.security.quarantine   3
com.apple.security.TMSafetyNet  8
com.apple.nke.applicationfirewall   171
com.apple.kext.MojoKDP  2.0.2
com.apple.iokit.IOSurface   152
com.apple.driver.AppleGraphicsControl   3.13.60
com.apple.driver.DspFuncLib 276.26
com.apple.kext.OSvKernDSPLib    525
com.apple.iokit.IOBluetoothHostControllerUARTTransport  5.0.0f18
com.apple.iokit.IOBluetoothHostControllerTransport  5.0.0f18
com.apple.driver.AppleBacklightExpert   1.1.0
com.apple.iokit.IONDRVSupport   2.4.1
com.apple.driver.AppleHDAController 276.26
com.apple.iokit.IOHDAFamily 276.26
com.apple.iokit.IOAudioFamily   205.11
com.apple.vecLib.kext   1.2.0
com.apple.kec.Libm  1
com.apple.driver.AppleIntelLpssUARTv1   3.0.60
com.apple.driver.AppleIntelLpssUARTCommon   3.0.60
com.apple.iokit.IOSerialFamily  11
com.apple.driver.X86PlatformPlugin  1.0.0
com.apple.driver.IOPlatformPluginFamily 6.0.0d8
com.apple.iokit.IOSlowAdaptiveClockingFamily    1.0.0
com.apple.AppleGraphicsDeviceControl    3.13.60
com.apple.iokit.IOAcceleratorFamily2    288.13
com.apple.driver.AppleSMC   3.1.9
com.apple.driver.AppleSMBusController   1.0.14d1
com.apple.iokit.IOGraphicsFamily    2.4.1
com.apple.driver.DiskImages.KernelBacked    444
com.apple.filesystems.hfs.encodings.kext    1
com.apple.driver.AppleHIDKeyboard   197
com.apple.driver.AppleMultitouchDriver  367.6
com.apple.driver.AppleInputDeviceSupport    76.1
com.apple.driver.AppleHSSPIHIDDriver    49
com.apple.driver.AppleThunderboltDPInAdapter    4.5.3
com.apple.driver.AppleThunderboltDPAdapterFamily    4.5.3
com.apple.driver.AppleThunderboltPCIDownAdapter 2.0.3
com.apple.driver.AppleHPM   3.0.8
com.apple.driver.AppleIntelLpssI2CController    3.0.60
com.apple.driver.AppleThunderboltNHI    4.1.3
com.apple.iokit.IOThunderboltFamily 6.2.1
com.apple.driver.AppleHSSPISupport  49
com.apple.iokit.IO80211Family   1200.12.2
com.apple.driver.mDNSOffloadUserClient  1.0.1b8
com.apple.iokit.IONetworkingFamily  3.2
com.apple.driver.corecapture    1.0.4
com.apple.driver.AppleIntelLpssSpiController    3.0.60
com.apple.driver.AppleIntelLpssDmac 3.0.60
com.apple.iokit.IONVMeFamily    2.1.0
com.apple.driver.AppleIntelLpssI2C  3.0.60
com.apple.driver.AppleIntelLpssGspi 3.0.60
com.apple.driver.usb.AppleUSBXHCIPCI    1.1
com.apple.driver.usb.AppleUSBXHCI   1.1
com.apple.driver.usb.AppleUSBHostPacketFilter   1.0
com.apple.iokit.IOUSBFamily 900.4.1
com.apple.driver.AppleEFINVRAM  2.1
com.apple.driver.AppleEFIRuntime    2.0
com.apple.iokit.IOHIDFamily 2.0.0
com.apple.iokit.IOSMBusFamily   1.1
com.apple.security.sandbox  300.0
com.apple.kext.AppleMatch   1.0.0d1
com.apple.driver.AppleKeyStore  2
com.apple.driver.AppleMobileFileIntegrity   1.0.5
com.apple.iokit.IOUSBHostFamily 1.1
com.apple.driver.AppleBusPowerController    1.0
com.apple.driver.DiskImages 444
com.apple.iokit.IOStorageFamily 2.1
com.apple.iokit.IOBluetoothFamily   5.0.0f18
com.apple.driver.AppleFDEKeyStore   28.30
com.apple.iokit.IOReportFamily  31
com.apple.driver.AppleCredentialManager 1.0
com.apple.driver.AppleACPIPlatform  5.0
com.apple.iokit.IOPCIFamily 2.9
com.apple.iokit.IOACPIFamily    1.4
com.apple.kec.pthread   1
com.apple.kec.corecrypto    1.0
Model: MacBookPro13,1, BootROM MBP131.0205.B02, 2 processors, Intel Core i5, 2 GHz, 8 GB, SMC 2.36f93
Graphics: kHW_IntelIrisGraphics540Item, Intel Iris Graphics 540, Built-In
Memory Module: BANK 0/DIMM0, 4 GB, LPDDR3, 1867 MHz, 0x80CE, 0x4B3445364533303445422D45474346202020
Memory Module: BANK 1/DIMM0, 4 GB, LPDDR3, 1867 MHz, 0x80CE, 0x4B3445364533303445422D45474346202020
AirPort: spairport_wireless_card_type_airport_extreme (0x14E4, 0x159), Broadcom BCM43xx 1.0 (7.21.171.47.1a8)
Bluetooth: Version 5.0.1f7, 3 services, 27 devices, 1 incoming serial ports
Network Service: Wi-Fi, AirPort, en0
USB Device: USB 3.0 Bus
Thunderbolt Bus: MacBook Pro, Apple Inc., 10.8

Looks like a potential bad disk drive - which means that a logic board replacement could be necessary.

Run an Apple Hardware Test by booting the Mac while holding down the "d" key. Hopefully it will reports either disk or RAM problems.

As it is a new Mac you should be able to get the faulty hardware replaced under warranty.