Firmware of your W8960N is the latest version? Change DSL mode to ADSL2 or G.DMT to see if it helps. If not, can you get a replacement from the reseller?

Did you download it from TP-LINK website? Disable anti-virus and firewall. Install it again. But Windows has built-in utility and it is not necessary to install a TP-LINK utility.

With orange LED, can you access internet when MA260 is connected to your PC directly? If you can, any other problems except the different color of LED? Is it MR3220 instead of WR3220 working with...

No way. You bought a product for Mainland China... Can you return it since you don't understand Chinese at all? Or try to contact fae@tp-link.com.cn for configuration guidance and technical advice...

Very creative idea. As I know, TP-LINK has range extender and we can create multiple profiles but users have to select one manually to connect... WA7210 has no such features.

Did you hard reset it? Unplug all devices connected to W8968 by cables and check lights again. If it is the same, get it replaced under warranty.