That's correct. To root cause the install issue with 1406, you will have to re-install 1406. Once installation is finished and if you still see BT device node appear as a Generic adapter, please share c:\windows\inf\SetupAPI.dev.log and c:\windows\inf\SetupAPI.app.log files. By running autorun.exe or setup.exe this way (setup.exe /l*vx 1406_install_issue.log) from command prompt, you will be able to collect more detailed logs as well.
Regarding the issue with mouse - It is likely interoperability issue with this particular LE mouse. Since you do not have any other LE mouse, can't confirm until the issue is root caused.