With Lars' Hardware Manager and then (gues it was Dmitry's) Hardware Explorer in tree view it shouldn't be a problem to confirm that. I wish I had found a way to make at least the XWP objects visible after the phase 1 of the update. Maybe I should better have used usbtree for that.
The USB drivers should detect whatever happens, but there are many possibilities, and the drivers are still quite new, so they may not detect everything that they should detect. I have looked at what Hardware Explorer tells me, but I am not sure that it really tells the whole story. Usbtree is useful too, but may not tell the whole story either.
Doug, do you know, if the order of the USB drivers still matters with 12.07? In the config.sys of my new-install try I have:
I know that USBD.SYS should (must) be first, followed by the X, E, O and U drivers (not necessarily in that order). Then USBHID.SYS. I don't think the rest matter, as long as they follow. Before v12.1, they need to be X, E, O, U, followed by USBD.SYS and USBHID.SYS, then the rest. I think Lars fixed his drivers so it doesn't matter what the load order is, but that is a different, unsupported (by Arca Noae), driver set. My Logical Config.Sys Sort program (LCSS) at HOBBES does it slightly different from what the "official" USB installer does, but it always works, for me (and others). Of course, if there is a problem in the driver, that isn't likely to help.
(I guess I have to report it to David. Before that, I have to try if it can be reproduced.)
Try what Pete suggested, a few posts back. That would seem to be pretty close to what happens with the installer. It may be that the driver is looking, before the stick is attached by the hardware, and that could be caused if the drivers are at the end of CONFIG.SYS (although that is probably not the case). I believe the installer runs "LVM.EXE /RediscoverPRM" from STARTUP.CMD, which could be getting there too early, so it doesn't "see" the device.
An interesting test, would be to go to System Management, at the end of phase 1, and add "sleep 2" to the beginning of STARTUP.CMD, then continue to phase 2. The bottom line is, that if the drivers work in phase 1, they should work in phase 2. It is a totally different story, if you can't get to the pre-boot menus, before the initial OS/2 boot, that is all done by BIOS. Phase 1 happens after you start the boot from MEMDISK, and that loads the drivers from MEMDISK, in the order that the pre-boot menus set up. Phase 2 uses a slightly modified version of your own CONFIG.SYS, from the hard disk. If there is something odd in there, it may not work quite right. The installer manages the USB lines (and a few other things), but most of it is left as it was found.