iPod Nano is not Recognized by iTunes 12.5 on Windows 10

I've seen this questions several times already but all of the responses seem to be treating the questioners like newbies. So let me be clear and expand upon the issues raised upon others.

I'm running Windows 10 on a fairly new machine (bought in Feb '16). The iPod Nano is a 7th Generation. I'm on the newest version of iTunes (12.5.1).

From what I can tell this is 100% an issue with iPod Service Module (64 bit):

1. The nano DOES charge from my PC on any USB port in any power up method with any Apple programs running. Other USB devices connect perfectly fine on all USB ports.

2. The nano DOES immediately open up like a standard storage disk for a brief flash and then immediately disappears.

3. The USB Controller section of the Device Manager shows the Apple Mobile Device USB and there are no icons next to it.

Now here's where things get interesting. If I unplug the nano from the USB while iTunes is running AND force quit the iPod Service Module program from the Task Manager and THEN reconnect the nano. The nano connects like any normal USB storage device, can be browsed via normal means, and maintains the "connected" status on the nano itself. Also no error appears in iTunes it simply doesn't recognize it as anything.

So Apple geniuses. Someone care to explain how to fix the iPod Service Module so I can actually use my nano like normal.

PS: this never happened with iTunes 11 and I'm unsure which 12.x it first began to occur with.