Hi, folks.
I've been struggling with this problem for years, but today it went completely dead so I decided to go nuts and disassemble my laptop. I've tried everything: installing updates, wiping drivers, rebooting, installing new driver, switching to PS2 and backwards. Nothing helped until I disassembled my laptop.
And here are my thoughts on the reason of that issue and my solutions for it.

The supposed reason is (as you can see in a red circle on the photo) the loose slot for the cable connecting a touchpad and a motherboard. I believe it is a weak place for all motherboards of that series as long as it is so widespread issue.
And having aforementioned in my mind the problem occurs in a way of some physical impact (i.e. you took the laptop, angled it on any side, slightly shacked or etc.) makes the connection terminated and Windows OS reacts immediately throwing an error code 10 (in my case)
Then there are only two options:
- Even if the connection reestablished the error still remains and any kind of lifehacks described in this topic would help, such as:
- installing Windows updates (apparently, it refreshes all drivers' state also);
- rebooting the device;
- deleting the driver and rebooting;
- deleting the driver, rebooting in a PS2 mode (changing it in BIOS), reinstalling drivers and rebooting back to I2C mode (change it back in BIOS);
- and some other solutions.
- If the connection is still lost the touchpad would not be functioning despite any of solutions have already been tried out. And the only way to restore operation of a touchpad would be manually disassembly the laptop and reconnect the wire to the slot.
The only thing that makes me curious is that the touchpad is still operating in PS2 mode if you switch it in BIOS (Advanced tab -> Ctrl+S -> touchpad mode). Maybe because of the protocol required (maybe it doesn't need all pins in a slot to be connected properly when it is PS2 but I2C requires strictly all of them), I don't know for sure.
PS as for me, I've added some soft silicone rubber on the top of that slot to help it holding that wire more tightly. Previously I've cleaned the wire contacts with IP Alcohol before plug it in. Time will tell if that would make any difference.
Hope that helps anyone struggling to resolve the problem.
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UPD a little update. After two weeks of smooth functioning it went dead again. I've tried right away all existing solutions on the internet but nothing worked. Even quick disassembly didn't bring it to life! Then I decided to plug off the battery for 40 minutes and assembled it back. And, Surprise! It came back to life!
All it needed was a kind of a hard reset, apparently.
Well, seems it is not a slot failure but the touchpad itself, I guess. Every time it gets worse and worse and it becomes harder and harder to resurrect it. I'm afraid, someday it will eventually completely die. So I'm expecting I'll have to start search for a replacement for this unit.