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Just to add to the original problem description. I performed the factory reset. The PC sees Kobo just fine before I set up the device. I sideload FW version 2.10.0 or 3.0.,0 it upgrades the FW and, again, PC sees Kobo, no problem. Now, after I set up the device (Wi-Fi and sign into Kobo) - here it goes, - after that my PC can't see ereader anymore and gives me "You need to format..." message. Works like a clock - tried multiple times. The moment I set up Wi-Fi and sign into Kobo the ereader becomes inaccessible from the PC. Go figure...
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