When it is asking for the WiFi connection, you can connect it to your computer using a USB cable instead. OTOH, several people have reported that their Kobo Desktop app does not recognize their Libra Colour/Clara Colour/Clara BW. Here's what I see when I connect my Libra Colour to the Kobo Desktop app. Note that the model is not displayed, the Libra Colour shows my Adobe ID and not my Kobo account. If I flip back to the EREADER/Book Management tab, there is no way to select books and send them to the Libra Colour.
Looking at the Kobo Desktop app version, it shows as 4.37.19051 which was built on 2023-Jun-21. Looking at the
Github repository, the last update was to add the hardware IDs for the Elipsa 2E.