I finally had success updating using the Klipsch Connect app. Previously the Klipsch Connect app would try to install 2 of 2 updates. This time it was 1 of 1 update and completed successfully.
I basically started over from scratch...deleted the app from my phone, rebooted, and then proceeded with the Fives Updater app and USB thumb drive procedure.
Why it worked this time and not before is still somewhat of a mystery...maybe Klipsch did change something within the download file.