Well, after several trial and error episodes and more digging - I found a post about starting the pedal in update mode and opening the updater and NOT the HX Edit.. This was the key.. That, and updating twice despite the error message.. I was able to piece together everything.. That said, here is what I did in case it helps someone else:
Prior to this process, please back-up your stuff - Mine was new so that step was unnecessary.
1) Down load the latest and greatest software from Line 6 as it pertains you your Helix situation
2) Make sure Helix is OFF
3) Connect Helix/USB to your PC
4) While holding FS6 & FS12 turn on the Helix (update mode)
5) Open Line 6 updater (Do not open HX Edit)
6) Follow prompts.
7) NOTE - This update takes a while and please see the updates notes about how tedious this process is including the "error messages" etc
8) Mine indicated it failed, so I did the update a second time right away and that went through - I seem to recall this being the case for many.
9) Once the second update was complete, everything indicated that I was now running the most current firmware (3.71) - I restarted everything to be safe
10) If you have a back-up you should be able to restore your presets - I ad no need for this (see above)
Hope this helps someone.