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The "Network error" could mean a lot of things. It could mean the device can't connect to your WiFi. If it does, it then checks for a page on the net. Then it starts talking to the Kobo server. If any of those go wrong, the sync will fail. The network error usually happens part way through this. It doesn't say that you can't get to the internet, just that something went wrong talking to the Kobo server. And as you have the problem for two different Kobo "devices", it suggests the problem was at the other end. Try again in a few hours and see what happens.
If it still can't get through, then try the downgrade. That will at least get you going and then you can sort out the real problem.
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