Thanks fiflot.
I tried the same: on a different win7 64b (laptop this time), with no other usb device connected.
And.... it worked!!! I successfully upgraded to version 2.00.0
It is not clear though what made the difference: using another laptop OR the fact that there was no other USB connection OR both.
So with this hiccup behind me it's time to give my thanks to Line6 team for listening to their customers and releasing the Android version of the remote app.
From what I tested till now on my LG 2 they did a great job with this APP.