New Vera Dongle doesn't work

I have a new box, a new dongle. (Latest Aeon dongle 2.78) When I remove the dongle from the router to include/exclude devices and try to change it’s state by pressing the button, it simply doesn’t want to change states. The dongles light will not stop blinking. It blinks on and off steady.

I have tried “reset z-wave network” and “reset z-wave chip”

I have the latest Luup version installed on the router.

Who knows the fix?

Did Micasaverde send me a bad dongle?

anyone else experience a dongle that behaves in this manner?

Update:

Now when I remove the dongle, the blue light stays on steady…

I think it’s defective.