Just an update, we (me and my friend) been doing some research and testing on this. This behavior seems to be limited to the DNA250 non color. We just tested a DNA200, and a DNA60, and they both can be powered on with full brightness and full controls through the USB port (obviously no vaping).
Hooking the board up to a bench power supply, we found that the board will turn on completely with roughly 3.2v input, and it seems that the theory of USB power not being enough to power the board doesn't work out as along with the board being able to power on at 3.2v, the USB power and Input power are electrically isolated. All of that, along with the weird "fire button lockout" as I will refer to it leads us to believe that it is some sort of limp mode in the firmware.
Honestly I have no clue why the board is set up the behave in such a way, I may contact Evolv directly to try to get an answer, as this has me interested, but for now, I am just happy that my board has turned out to not be DOA