Radio stuck in update mode

I recently bought a 2013 Limited with the JBL system, when I test drove it, the nav and everything was working fine. Returned to purchase a week later, when I stopped fanboying the next day, I noticed that the radio was constantly flashing "In software update mode: please insert valid update stick"

This prevents me from basically doing anything besides listening to FM radio. Can't even program favorites, or get to any apps.

I have scheduled to have Toyota look at it early next week.

1) This is something the previous dealer would cover right? (Don't have much experience with dealers)

2) Anyone know of a fix?

I've tried to download the software update, and it fails on a "MMS" driver or something.

Also tried resetting by unplugging the negative terminal and pumping the brakes.