OK Robin,
your software version is OK. (there is a newer one but that is not the issue).
Here is some background in respect of the B2 side of things.
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1) the B2 can ONLY use FAT32 formatted USB devices - it is best to use the B2's function to do this format (not it will erase all existing content!!!).
Brennan has made several units, the OLD JB7 and the newer B2 and BB1's.
When you make a backup from a JB7 this backup can be read by the B2 to import the JB7 files and one can also write a JB7 format backup to transfer stuff form the B2 to a JB7.
These are the B2 commands which do that
You can use the above to make and restore a B2 backup BUT this is not the BEST way of doing that, instead you should use
The FACT that you got the message "use restore"
would imply that the B2 had detected that you backup was of the JB7 format when you ran the " import from C " command.
If this is the case then using the "Restore USB C" should work for you.
I hope this provides the clarity you need.
Fred