Tried the Mk4 firmware on my Touch and checked the syncing/connection issue.
First go, starting with the wifi off, the perpetual connecting signal came up and I canceled sync after 5 minutes. As in previous firmwares if wifi was connected first it synced properly.
Turned wifi off and tried to sync again - this time it connected with wifi and updated correctly! And from then on all syncs from no wifi have been fine. Looks like this bug has been [mostly] fixed, well, except for that initial try.
ETA: tried after powering off and sleeping also - it still worked!
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