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I am also having the same problem except I have just bought my reader.
I have reinstalled kobo desktop numerous times, factory resetted the reader, done the paperclip reset, tried different ports/cables etc.
I get to step 1 but nothing happens from there, even after leaving it for 4 hours!!!
It says on the ready connected and charged so is definitely working.
I'm lost and very agitated as been trying to get this set up since 12pm!!!
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