Spoke with Dell - the issue is my particular laptop was shipped with a custom image so the OS Recovery Tool will not work - Dell is shipping a new drive with the custom image -
Downloaded the OS recovery tool for my Latitude 3420.  Successfully installed tool to a USB 3 drive.  Connect the laptop to an ethernet jack.  Run the tool on the laptop and it passes all the hardware diags.  "Reset to factory settings" is greyed out. "Reset and update" is the only available option.  Try to run this option and it errors out with a "Download verification failed". Any suggestions are appreciated.  
Latitude 3420 OS Recovery Tool - USB Update fails