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Reviving this old thread wondering what happened if you're still around?
I have the exact identical issue. Except my firmware actually completed and then it worked for nearly a week until the next time I plugged it into the computer.
Right then and there it jumped into this infinite loop you speak of. Same non - rooted device. When I called sony they basically just told me to reset it, then to look on the website for support and if I cant fix it they no longer support it so I cant even send it in for repair.
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