New Photon2 fail to update and finishe the setup

Hi, I got my P2 arrived today, I plugged it into the PC and went through the setup. I had to manually set DFU mode. The update gets tuck on reconnecting forever. I tried to connect to it from my phone but the Wi-Fi is not showing up, blue LED flashing all the time. Any clues what could be the problem?
Update log:
Device is going in DFU: ...
Dfu Error: IN control transfer failed
The device is connected: ...
The device is connected: ...
Getting device: ...
Getting Device OS information for p2
Downloading binary: p2-bootloader@5.5.0.bin
Downloading binary: p2-prebootloader-part1@5.5.0.bin
Downloading binary: p2-system-part1@5.5.0.bin
Downloading binary: p2-tinker@5.5.0.bin
Updating modules over DFU
Updating module: p2-system-part1@5.5.0.bin
Updating module: p2-tinker@5.5.0.bin
Updating over DFU succeeded
Reconnecting device: ...

Hi @konradps

Welcome to the Particle forum!!

What is the color of the status LED currently? Dark Blue? It is possible to put the device into DFU mode manually, please see this link or below.

To enter DFU Mode:

  1. Hold down BOTH buttons
  2. Release only the RESET button, while holding down the SETUP button.
  3. Wait for the LED to start flashing yellow (it will flash magenta first)
  4. Release the SETUP button

The device now is in the DFU mode.

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