Well, mine is finally working. I gave up myself after trying multiple different tricks ... reinstalls etc.
But, I was able to locate a private dealer. This guy worked as a mechanic at the VW group for 25 years and has now gone off on his own and set up a VW group-approved garage. He actually knows what he is talking about (for example the protocol for comms on the Q3 is the old slower one as opposed to the other models). Anyway, he updated my software and was able to fix the key user etc login issue; and recover all my radio, navigation favorites from my account at Audi. So, I am now a happy man!