I had similar behaviour with KSM4 when my reader has not identified itself as dragon (if it is the Aura HD, I always mix the codenames
. I copied again the contents of the zip of the firmware upgrade and let the firmware upgrade take place - in practice a factory reset.
I hope there is other solution, as it was quite drastic (and even after that it did not boot to nickel, so I had to do a real factory reset after 3 reboots).