I found this on Google and had a similar problem. I plugged in my ~20% battery Kindle to my Win10 x64 PC with a 3rd-party Xbox 360 USB cable. I think i've used the same cable for this in the past. For some reason, it went haywire and kept refreshing the main menu and reconnecting to the PC every few seconds.
Eventually it ended up in the diags menu. I poked around for a bit, did some tests, wrote some XML files, etc., and went to Amazon support chat.
They told me to put an empty, no extension DO_FACTORY_RESTORE file on the root of the kindle (after activating USB mode from the diags menu).
I did that, and disabled diags menu. Then I rebooted. I may have used the power button.
After several automatic reboots when I feared a brick, eventually I got the factory fresh normal unboxing menu and set up my kindle.
This was a special offers PW1 on (I believe) latest firmware. I bought it used and did a reset without connecting to wifi. Did the same just now.
Hope this helps someone.
Related:
https://www.reddit.com/r/kindle/comm...s_your_kindle/