Hi. I had this happen to my camera. The lifecam studio. It happened about 3 months ago. I got a replacement thinking it was a faulty camera. I was quite shocked the new camera didn't already come with the firmware already upto date. Anyway. I went to update
the firmware and it happened again (fresh download). And now I'm going to have to get a fix for this.
One solution would be to make it so we can force the firmware to update and ignore the check it does on which firmware is already in the camera. But until that day then Microsoft should take that firmware down as I don't have a USB hub, so none was used
while updating firmware. If anyone could modify the firmware so it ignores the check when firmware is already up to date then that might fix the problem and install the firmware again and hopefully not corrupt.
Another note. The camera is seen by all my computers as the lifecam studio, also the mic works with the updated firmware, but as soon as I try use the camera as a webcam, then the lifecam disappears and comes up as unknown device.