I had this and I know others did. Because you reset the whole thing the logical place to look is the one thing that remains, the synchronised data. What the problem seemed to be is they changed the format of the usb peripheral file and it didn’t cope with it and crashed like yours mid load. Reinstall failed because it just downloaded it back. So it had to be manually removed.
If this specifically doesn’t work, is there a way of erasing your MSFS data stored in the servers ?