Catalem

I was having the exact same problem and I finally managed to get it right.!!! I was using a micro sd to usb adaptor and apparently it did update the firmware in step 1 or at least it said so on the app, and step 2 also went well. What you need to do is use an old 2.0 USB flash drive (mine was 4GB), and when the update was finished I did a factory reset just in case and went straight to Klipsch Conect app and it worked! Another thing to take into account is that the first time I updated them and it did not work but it said yes on the app is the fact that the lights at the top did not blink one after another. You can make sure the step 1 of the update is properly done (and so the usb is the right one) if all the lights blink one after another for a couple of minutes and then goes to a fix light or blinking bluetooth in case there's no bluetooth device connected. If you don't see lights blinking you must use another USB.