I got my 1054Z last December and it, too, had this unpleasant smell. A true "stinker"!
However, as my space is very limited I only have it on my desk when I actually need it so it mostly sits on a shelf.
After a few weeks sitting there in the open the smell was mostly gone. Now it's not noticeable any more.
I have experienced such behaviour with new electronics/devices several times in the past
but never as bad as with the 1054Z -- except perhaps with the 16K RAM expansion module for my ZX81 back in 1982...