Hmm. I reread the 1.0.5 firmware notes email:
- Factory Reset Optimization: Aligned behavior with other products. The LED bar will now blink three times in red to confirm a successful reset.
- Network Joining Issue Resolved: Fixed a critical bug that prevented some switches from joining a new network.
Hmm. #2 sounds a bit suspicious and perhaps is relevant. It is vague but I can see a way to interpret it as not being able to join a new network after a reset.
Also an earlier thread: White Series - Factory Reset not working - #25 by CroVlado