Originally Posted by
oscarh
I had read and understood that the potential fault is likely only at an hieght of less than 400 feet, therefore during take-off and not in climb mode.
"In both cases, the engine recovered to the proper N1 thrust level as the airplane climbed beyond 400 feet above ground level."
Have I misunderstood the EAD?
No, you have understood it well. The thrust rollback occured only in takeoff mode below 400ft AGL. The autothrottle restored thrust at 400ft AGL. Hence the AD rule to use only full rated thrust for now.