Yes. This same process got me half a day...
I've had to resort to purchase a wireless keyboard and mouse with a USB receiver and I have an HDMI adapter for my external monitor as this issue was completely debilitating and I simply couldn't do my work. To connect more stuff (external drive which I used regularly) I would need a USB hub.
I find it rather unacceptable that no one from Microsoft is even commenting here to tell us that they are on this. This is not just a small issue. Taking into account the limited connectivity available on the Surface tablet, it effectively renders the device unusable as a computer.
Best of luck to you all...