You're either using a very (very) old USBNet hack, or you mangled the config (if you're seeing the USBMS screen, the device isn't in USBNet mode), or you mangled the toggle.
Toggle via KUAL, it'll warn appropriately about what will and will not behave properly as far as doing it while the device is plugged in (generally, you'll want to toggle USBNet with the device unplugged).
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