Their upgrade does indeed test a few things before anything irreversible occurs.
The iDS sends your iLiad the file in a compressed format which is protected with a CRC32 code. They uncompress the file and the CRC32 code is checked to ensure it unpacked correctly.
They are also using a Flash memory device in the iLiad that fault checks the Flash as it writes to it and will "on the fly" swap bad writes to another chunk of Flash if the write failed (and mark the failed part as bad so it won't re-use it.)
That said, iRex has had continuous problems with finding and mounting file systems reliably on the iLiad. If after blanking the Flash the iLiad were incapable of re-discovering the memory device so it can communicate with it? The iLiad will be a boat anchor.
I also caution everyone to get it in writing and keep copies of it if iRex says they'll pay for the shipping to return your device for repair.
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