I had a similar problem, and formatting it in my camera made the card readable.
I also had to rename the SmartQ7 firmware file to SmartQ5 at one point.
I think it depends on what bootcode is on your particular device. Some are undoubtedly older than others, and maybe not sold in sequence. After you successfully update to 4.0, I think it rewrites that bootcode.
Worst case, try flashing Mer to see if it's hardware, or a corrupt firmware.
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