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Valve pushed out a new SteamOS update out to fix to stop an endless update loop when performing a factory reset. This was pushed out to the stable and preview update branches:

SteamOS 3.4.4

  • Fixed an issue where performing a factory reset could cause the device to get stuck in an update loop

SteamOS 3.4.5 Preview

  • Fixed a focus issue with Forza Horizon 5
  • Fixed an issue where performing a factory reset could cause the device to get stuck in an update loop

Both of these updates along with discussions can be found on Steam.

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