Hello.
I am an information technology professional and a producer in my off hours, I work at a large bank in Canada primarily with Windows 7 so I was able to fix this issue quickly. When you initially connect the Microbrute SE to the computer it automatically installs the drivers - this can be a problem.
You need to go to control panel->administrative tools-> device manager and delete the 'updater' and 'Microbrute' entries found under sound, you can delete the 'updater' entry without rebooting but not the Microbrute driver.
After deleting the Microbrute driver system should ask you to reboot, go ahead (keep the device connected)
Once logging back in run the MicroBruteConnection, it should update the firmware (it did get stuck updating at 1% the first time and I had to repeat above again)
Once the firmware updates you can try to connect, if it still gives the error "device is not connected" plug the usb into a different usb port. That is the key - Windows remembers device settings for USB, just make sure you get the firmware update pushed to the device before you switch the USB port. Each usb port you use will remember the faulty settings so it is important to get the firmware update on the first port.
Everything is working including the sequencer.
On a side note - the Microbrute SE is a great addition to my studio, I am just starting out on the modular journey and have a few other pieces, but well done Arturia, this little thing rocks and interfaces well with other modular gear. Arturia - email me if you are looking for a beta tester/QA.
Cheers,
Nick Dundas