Well, it is not brand new and under warranty anymore. I bought it in 2012.
I emailed Stihl about the issue and below is their reply.
Two stroke engines like the one in your MS170 use an ignition principle called "loop scavenging". This means that when the fuel is cycled through the four transfer ports of the cylinder from the bottom to the top of the combustion chamber, it begins to swirl in a widespread pattern to insure that as much of the fuel burns as possible when the unit fires the ignition spark.
Unfortunately, it doesn't matter how efficient the design of the engine is in the two-cycle format because a small amount of raw fuel is going to escape with the burnt exhaust gasses each time the engine fires. This raw gas/oil mix tends to collect on the fire arrestor screen of the muffler, and over time it will accumulate and cause an obstruction. When this happens, the obstruction will not allow the exhaust gasses to escape, causing them instead to bounce off and push back through the combustion chamber and, if the blockage is severe enough, out of the carburetor venturi onto the air filter.
The issue can be compounded if the engine is feathered or run at part throttle for extended periods of time. The fuel cannot burn efficiently when the engine is run in this manner, so the screen can clog much faster.
The best way to cure this problem, as you know, is to remove the screen from the muffler and check it for carbon build-up. If carbon is present, simply pass a wire brush over the screen from all sides until the debris is removed. Then re-install it back into the muffler and try your starting procedures once more.
I think I may try another brand oil when the Stihl Ultra is gone. Not sure if my Tanaka string trimmer has a screen, but I have had that for almost 20 years and have never had that kind of problem and it runs 25:1 mix. And I could remove the screen. None of my other, vintage saws have that fine of a screen and I only cut wood on my property with my saws.