hi, I had the same problem, my original flash drive was not recognized and constantly asked to format it,
the update did not install in any way everywhere an error (wifi and qcma), the method of disconnecting the cable after the license agreement is also immediately
threw an error and I acted as follows:
I pulled out the original flash drive and installed sd2vita and then rebooted the console, she asked if my psn account was attached to the flash drive and I selected yes,
vita asked
go to psn, I registered DNS 212.47.229.76, and went into psn but the flash drive was not recognized, then I immediately made a reset and configured the vita but did not connect
to wifi and did not enter psn
and vita saw my sd2vita as a regular (original) flash drive and it appeared in the data management menu, after I downloaded FinalHE and installed h-encore
I don’t know what exactly happened, but I described everything as I did.
Sorry for my English, I use a translator because I am from Russia and I had this problem, I was able to help too!
P.S. Удачи!