Flashing green (device connected to server) and then flashing orange only (device is not connected and has no WiFi credentials) suggests that the device is being rejected by the server. There are various reasons for this: that it has previously been blessed as a production device, for example, or has been assigned to a Test Production Device Group. We’d need a device ID (you can PM it to keep it private) to check it against our logs.
You ran into an exceptionally rare race condition that can happen when an imp004 upgrades from release 35.x to a stable release. It’s basically never going to happen again.