I try to understand what was happening:
- the KSM main menu showed a new entry "handle update"
- you selected "handle update" and then "install update" (which was one among several options)
If this is what happened, the update disabled KSM, and I can provide a small package that enables it again. If it happened differently, please give a description with more details.
I should mention that with the new FW there is a problem with KSM on H2O and some other models. Currently, when you enter nickel you should return to KSM, since otherwise the screen will rotate and KSM difficult to handle or not at all. I think this can be fixed, but until now nobody asked for it, or offered to do dome test.
Edit: I uploaded the restoration package.
Installation:
- Extract KoboRoot.tgz from the archive and copy it to .kobo of the device.
- Safely eject and disconnect the reader.