Doesn't sound like a reed switch problem. Are you sure you're pressing BOTH buttons when you're putting the magnet in the HR recess? If you are, it's probably a fault in the chip logic, and thus beyond remedy. I have not seen this particular defect before.
I agree with Bruce. Make sure you have both buttons pressed down when you use magnet to set day, or try turning magnet around when doing this. I don't mean use rounded side, just flip the flat side. I've had it work before on other modules. Greg R.