The factory reset is different.. try again using this method.
Universal Factory Reset.. any model TC or AE.
Unplug your TC/AE from power or turn off at the power point.
Hold in reset. and power the TC/AE back on.. all without releasing reset and keep holding in for about 10sec. (this is often difficult without a 2nd person or a 3rd arm).
Release it when the status light flashes rapidly. If it doesn’t flash rapidly you have missed it and try again.
Be Gentle! Feel the switch click on. It has a positive feel.. add no more pressure after that.
TC/AE will reboot after a couple of minutes with default factory settings and will wipe out previous configurations of the router.
No files are deleted on the hard disk in a TC.. No reset of the TC deletes files.. to do that you use erase from the airport utilit
Note the following.
YOU must have ipv6 set to link-local in the computer ethernet and wireless adapters.
If you need to you can do it manually though by ethernet.. see this post for the details.