DragonFly Red stopped working

I often use an Audioquest DragonFly Red connected to a MacBook Pro for audio at work and with an iPhone/iPad when traveling. Sometimes I connect headphones and sometimes a separate powered speaker... long story long, a few weeks ago I noticed a sound similar to a CD skipping interrupting the sound when the output was through the DragonFly that resolved but with the crappy non-DAC audio quality when either the headphones or speaker was connected to the headphone jack of the laptop. I tried updating the firmware to the DAC and now get no sound at all from the DAC...dead silence until I remove it from the USB port or change to another output.  Making things even more strange, when I connect the DragonFly to an iPhone using the camera adapter I get the sound with the incessant skipping noise again. 

Anyone else have this or similar issues? Is the device just dying and need to be replaced? I actually contacted audioquest customer support and they offered to replace it for just the cost of shipping, but in the meantime while I await the necessary paperwork, I thought I'd reach out on here and see if anyone had ideas worth trying that might actually fix the problem. Is it possible this is an issue with software no longer being compatible after apple's automatic updates and wont be resolved with a new unit?