I have the same problem, it is just stuck in loop, it does the firmware update (well that's what it is said on screen) and after that the headset is not detected but it keeps saying that i have to do a firmware update that's the 6 or 7 th time I tried. (after one month of not using the riftS at all, i find this very irritating)
After unpluging the video cable on the headset I got to blackscreen to the 3 horizontal dots (can hear the oculus theme) now and i can see my controlers on the floor
Have you tried uninstalling the oculus software and re installing? sounds like something got corrupted in the download or something
VR dedicated computer...AMD Ryzen 7 3700X, 32 gigs of G.Skill Trident Z neo 2X16 Gb DDR4 3200Mhz MSI 1070-TI, on a MSI B-570 Gaming plus motherboard, EVGA super nova 1000 Watt PSU Oculus is on a CORSAIR Force MP600 Gen4 PCIe x4 NVMe M.2 SSD
I've had a similar issue since buying it where it'd tell me it can't find the display port or tell me to reset the software or it'd tell me it can't find the headset then I'd go about unplugging it and plugging it back in helps I have to go through pretty much every day of a rinse repeat of unplugging plugging back in restarting my computer and going through different methods until it works for that day I contacted support about it and got told they are aware of the issue and are looking into a fix but have no time frame on a fix.