Just a thought, perhaps the bootloader in your pic is corrupted? Have you tried erasing the chip and reloading the bootloader into the chip? Tried using a different chip?
Is there anway to get into device manager and unistall the device driver for the bootloader?
Squib
I'm glad you fixed it (your eyesight must be getting as bad as mine as I make those sillly mistakes too!)
Were you game enough to try your original chip again?
Squib
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