Just an update on my progress. My prior MacBook would unexpectedly freeze for 10 seconds, then the fans would go 100% for 5 seconds, and the machine would then power off or restart. I would check the logs after this issue and get a "bad magic" kernel panic. They sent me a brand new replacement. This issue seems to be resolved with a brand new replacement. This is a hardware issue (unless you're having panics due to the most recent version of Catalina). If you're having kernel panics, bad magic issues, or unexpected shut downs/reboots, then I'd recommend to get a replacement as soon as possible. This is the only way to resolve this issue.
I spent countless hours troubleshooting the issue with Apple and sending it out for repair twice. The first repair, they only reinstalled MacOS and updated my T2 firmware. This didn't resolve it. The second repair, they replaced my Touch ID Board and Logic Board. This also didn't resolve the issue. I then requested a new replacement (since I'm still within my warranty). They approved this and were able to send me this brand new replacement. This replacement does NOT have any issues and now the issue is resolved.
Please keep in mind that Apple (US) will only send a replacement after a certain number of repair attempts (usually 2-3 attempts), if you're past the 14-day return date. So please make sure to get started on the repair process and after the second/third repair, ask for a replacement. This is the only way to resolve the issue. It was the only way for me to resolve the unexpected shutdowns and reboots with "Bad Magic" kernel panics. I have read prior that this is the only way others have fully resolved this issue. I hope you all have the same success as me!
