That burning plastic smell is usually just the manufacturing residue and protective coatings burning off, and it's pretty normal with new air fryers. The heating elements and internal components often have oils and polymers from the manufacturing process that need to clear out. Running it empty was the right call, but sometimes one cycle isn't quite enough to get rid of all of it. Try running it a few more times - crack a window or turn on a fan while you do it. Most people find the smell clears up after 2-3 additional empty runs at the highest temperature for 10-15 minutes each.
If the smell is really intense or lingers for more than a few days of normal cooking, you might have a defective unit worth returning, but honestly it's probably just the normal break-in process. The key thing is whether the smell goes away after a few more runs. Use your nose as your guide - if it smells fine after another couple of cycles and the smell doesn't return when you're actually cooking food, you're good to go. If it's still strong and acrid after that, or if it smells like something is actively burning rather than just off-gassing, then yeah, reach out to Cosori's customer service about a replacement.
In the meantime, definitely don't stress about using it - that smell won't hurt your food or make it toxic. Just make sure your kitchen is well-ventilated during those initial runs and you'll be fine.