Made a paper backup and tested it when invited to do so. "Bad Backup!". I've triple-checked that I entered all the letters correctly. Guess I might as well delete this wallet and create a new one - I haven't used it yet. The "new user experience" has been less than ideal.
Bad backup means the internal error checking on the backup is erroneous. That's some deep data corruption. I have never ran into this. You should make a new wallet indeed, and make sure to test your backup before sending funds to the wallet.
You pulled the master branch. You should be pulling the testing branch right now. Browse to the Armory source folder and do this:
git fetch
git checkout testing
make clean
make