Sorry to re-surface this issue. I attempted to update my Bluetooth drivers along with my AC 7260 adapter today after seeing there were new ones available and still dealing with issues related to WiDi and getting this adapter to work on my Windows 8.1 update 1 desktop that has multiple displays with a nearby TV using P2TV3000 (don't get me started), and ran into this issue which has been reported previously, with the Bluetooth adapter showing up as an Unknown USB Device (Device Descriptor Request Failed) in device manager. This occurred after installing 17.0.1401.03 from this Link for Windows 8.1 (latest update 1 also installed).
After remembering I was among those that had to swap my connector around to line up the pins as it was in the batch that were mis-labeled, I logically assumed they had corrected the problem somehow with this update. Unfortunately, flipping the connector around to line up with the USB header also yields the same result. I also tried removing this version and going back to 3.1.1311, but the error persists despite uninstalls and cleaning the registry with CCleaner. My adapter is in a custom built PC so any advice here on steps I could try to resolve, would be greatly appreciated. Thanks guys!