Thunderbolt Display Firmware 1.2 broke the USB inside the display.

Can't say I'll be in a hurry to install it, if the repair works.

Any idea if they would cover the repair if one doesn't have Apple Care, but the issue is a direct result of their firmware? I've hesitated even calling about the problem cause I don't want to get charged, especially since nothing they're going to have me do will do anything!

Hi Anthony, I've found Apple very good to deal with over this issue. I wasn't charged for the two lengthy support calls I had with them, and they've agreed to replace the logic board in my out-of-warranty Thunderbolt Display at no cost. If you've got the time, it's worth taking it in for service to see what they say. At least you'll get a free diagnosis. In my case the issue isn't a minor annoyance -- it's a major defect introduced by an Apple firmware update that caused an expensive piece of hardware to not work as it was designed to.

TThanks. I'll call them tomorrow on this. And I agree it's more than a minor annoyance. My MBP hasn't slept in days so I don't have the issue! The real question is whether or not replacing the logic board fixes the issue or not.

try to reset your TB display:

http://www.ifans.com/blog/87530/

Perfect timing. I was on the hold with Apple when you posted this so I performed the reset as described and then changed my sleep settings to 1 minute and let it sleep. The senior advisor got on afterwards and we discussed it and he was going to suggest doing this as well. I had no idea there was a SMC reset for the display! MBP sure, but not the display.

Anyway, after letting it sleep a few minutes, I was able to bring it back up and no USB issues at all. All ports worked, FaceTime camera worked, audio worked. So now I'll give it an extended trial of sleep to see if the display continues to act up or if it's all good. I'll report back when I have a little more trials.

Problem is still there after a longer sleep cycle. So reseting the display SMC did nothing. Emailed the senior adviser who was helping me to see what next steps, if any, there are.

Took my display to Apple and about all they suggested was to leave feedback on the issue so Apple knows there's an issue with the firmware. Seriously?

THe guy also said that if I wanted to chance a logic board replacement then it would be on my dime and no guarantee it would fix the issue. Needless to say I'm not very happy with Apple right now. I have a $1k paperweight.

Wow. To add insult to injury, I can't leave feedback for the display because it isn't listed anywhere on the feedback page!

So replacing the board did fix the issue? If that's the case and its a direct result of the firmware upgrade, we shouldn't have to pay to get it fixed. That's ridiculous in my opinion.

None of these steps solved this for me. I'm very annoyed that I have this issue from a firmware update. I ended up spending a lot of time at the apple store and getting a service call started thinking my MBP Retina was at fault. Now I realize that the USB ports problem is the culprit. Not even sure how to get this resolved because my warranty is out on my TBD.

This worked for me! Thanks for sharing!