[Water Warrior 2]

Congrats on the bike and welcome.
Front wheel: a disc brake will normally make a bit of noise. This is because the pads are always in contact with the disc. All is good.
Oil smell: I would assume that the engine is still trying to burn off the original shipping grease/coating. With only 700 miles on the bike it certainly wasn't ridden enough to do the job properly. You aren't the first rider to notice this.
Compressed air: A compressor is handy but not as needed as many folks would think. You can live without one just like I have. I do however use a 12 volt compressor to pump up tires but not a regular shop compressor that the manual is refering to.
I would suggest going over the bike with some TLC to check for loose nuts and bolts and lube anything that moves. Likely the bike never had it's 600 check and it needs it. The manual will help you. Make all the adjustments needed on the controls to fit your body. Of particular interest is the rear brake pedal. Adjust it to fit your leg/foot. The bikes usually come out of the factory with the pedal too high to fit most folks.
The bike most likely never had it's 600 mile valve check. This is something you should do or have done by a decent shop.
You will likely need a new battery too if this is still original. A new battery and a Battery Tender will serve you well. The Battery Tender is a small smart charger that maintains the battery when the bike is left unused for a while. It can also be used to charge up a new battery properly overnight before being put into service.
Tinkering and a little TLC will familiarize you with the bike and both of you will be better off for it. Have fun and don't be afraid to ask a silly sounding question. We all have them.