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I updated my iPad Air 3 to iPadOS 16.3 tonight. I did NOT attempt to use a USB-C to lightning cable this time. I connected the iPad to my Mac mini using a USB-A to lightning cable and I didn’t have any issues with it boot looping. I also checked to make sure the correct IPSW file was downloaded and what I saw matched the file from https://ipsw.me/

Good to know, thanks for checking back in on this!
 
Wirelessly
From my January 16th post, "This issue happens whenever you update to ANY iPadOS 16.x version (ie. 15.6.1 to 16.X or 16.1.1 to 16.2) via a lightening cable." If it was happening via OTA, Apple would have fixed the bug within hours, however, Apple doesn't care about unused features in their products. I could tell you other stories to confirm this, but suffice it to say they don't care about buggy software features that affects a small minority. I called Apple support on January 20th and spent way too much time (well over an hour) working with 4 different Apple Care specialists just to find one who knew what they were doing and could submit a bug report to the iOS engineers. To this date, no one from Apple has reached out with a status update or resolution. Par for the course for Apple.
 
From my January 16th post, "This issue happens whenever you update to ANY iPadOS 16.x version (ie. 15.6.1 to 16.X or 16.1.1 to 16.2) via a lightening cable." If it was happening via OTA, Apple would have fixed the bug within hours, however, Apple doesn't care about unused features in their products. I could tell you other stories to confirm this, but suffice it to say they don't care about buggy software features that affects a small minority. I called Apple support on January 20th and spent way too much time (well over an hour) working with 4 different Apple Care specialists just to find one who knew what they were doing and could submit a bug report to the iOS engineers. To this date, no one from Apple has reached out with a status update or resolution. Par for the course for Apple.
Oh. Weird, that it only happens via cable.
 
This is an extremely odd issue, and unfortunately, there is precedent for Apple not fixing odd issues that don’t affect a lot of people. The vast majority (maybe barring a handful of people) must update via OTA, otherwise there’s no reason for this not to be fixed yet.

There is an activation bug for A9 devices on iOS 9. Apple deactivates the device (any A9 device: iPhone SE 1st-gen, iPhone 6s/6s Plus/iPad Pro 1st-gen (9.7 and 12.9)) and you have to update iOS to get it back. It doesn’t affect many people, and Apple wants us to update, so they don’t care.

This isn’t the same in one way because Apple wants people to update, but the requirement of “a lightning cable that’s USB-C and iTunes” might be uncommon enough for Apple not to care. Otherwise, there's no reason for this not to be fixed. Like I said, this is quite abhorrent: what if the user were somewhere with no Apple Stores? It would be impossible for them to fix this. Hopefully they fix this and it doesn’t go unfixed forever like the activation bug.
 
This is an extremely odd issue, and unfortunately, there is precedent for Apple not fixing odd issues that don’t affect a lot of people. The vast majority (maybe barring a handful of people) must update via OTA, otherwise there’s no reason for this not to be fixed yet.

There is an activation bug for A9 devices on iOS 9. Apple deactivates the device (any A9 device: iPhone SE 1st-gen, iPhone 6s/6s Plus/iPad Pro 1st-gen (9.7 and 12.9)) and you have to update iOS to get it back. It doesn’t affect many people, and Apple wants us to update, so they don’t care.

This isn’t the same in one way because Apple wants people to update, but the requirement of “a lightning cable that’s USB-C and iTunes” might be uncommon enough for Apple not to care. Otherwise, there's no reason for this not to be fixed. Like I said, this is quite abhorrent: what if the user were somewhere with no Apple Stores? It would be impossible for them to fix this. Hopefully they fix this and it doesn’t go unfixed forever like the activation bug.
Sadly they won't fix it. They simply don't care. They still have not called me back on the issue, and I haven't cared enough anymore to follow-up. Sadly, this isn't Steve Job's Apple anymore. They are about profits, not quality products.
 
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