You may or may not have a faulty component. But first, let's check the connections and the ways you are trying to use this.
That board appears to be a combination of a fan MOTOR Hub for speed control and a fan LIGHT Controller to power and control the light displays in the fan frames. Fan motors and lights are completely separate devices although both are mounted in one unit. This board is made so you CAN use fans with ARGB lights in their frames (as supplied with the computer) with a mobo that has NO means of controlling lights. BUT if your mobo does have that ability (and yours does) the board has an option to let the mobo do that lighting control job.
The board requires several connection cables already installed. Check that they all are connected properly. Referring to your photo, at the bottom the wider connector with 4 wires brings power in from a SATA or 4-pin Molex power output connector from the PSU. Next to that is a 2-wire cable that goes to the case's front LED pushbutton. At the top end there are two cables, one with 2 wires and one with 3, but I cannot read their labels correctly. ONE of these will go to your mobo's JRAINBOW1 header at top near the front. See your mobo manual p. 40. The other will go to one of your mobo's SYS_FAN headers (p. 36). NOTE exactly which SYS_FANn header.
If all those cables are connected properly, now go into BIOS Setup. We need to ensure that the mobo SYS_FAN header involved here is configured properly. See manual p. 58. On that screen at upper right choose the particular SYS_FAN header the board is plugged into. Then on the far left choose the PWM Mode, not DC or Auto. Right below that set the Temperature Source to Motherboard, not CPU. Use Esc to get back to Main Menu, then F10 to get to an Exit Menu where you choose to SAVE and EXIT. This will save those settings and reboot. This ensures that the mobo will send to that fan board the PWM signal it needs to control fan speeds.
Now we'll look at light controls. The system is intended for basic use to let you manually control the light display options by pushing the case LED button to make any changes. In fact, it may well go into that mode every time you reboot. But because your mobo DOES have the JRAINBOW1 header and you have a cable connecting that to this board, you can change this method of control. On most systems like this if you HOLD DOWN that case LED button for 5 sec or more it will tell the board to turn over LIGHTING control to the signals it gets from the mobo. Then you use the MSI software utility Mystic Light to configure lighting controls.
So that's two areas of adjustment. One is to ensure the mobo fan SPEED controls get to the board and on to your fans. The other is to allow the mobo LIGHT controls to do their job instead of using the case pushbutton.