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One acquaintance of mine owns and Oasis 3. With firmware 5.18.2, it still connects over USB. What Amazon did remove was the ability to download ebooks to transfer over USB which is an entirely different critter.
I would suggest different USB cables, trying a different port, etc. as that is a more likely location for the issue. If you are using Windows, you might want to try NirSoft's USBDeview and see if is shows any unknown devices (you can also do this from Device Manager but will need to enable Show hidden devices under View.
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