I was getting the "bad state" message setting up a factory fresh SB3 today. It seemed to do one firmware update fine (holded down brightness) then it wanted to do another one right away. Holding down the brightness then resulted in the error message. The forum website was down this morning for me so I couldn't check to see what diag. info. was being asked for. It eventually rebooted fine. One difference is that I didn't hit any keys after holding down the first brightness - I THINK. Sorry I don't have more detailed info.
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