I am having the same problem. I have tried 2 different Photons, same result.
Photon setup unable to automatically connect to wi-fi networks.
Proceeding in manual mode, I connect to the Photon's wi-fi network.
Regardless of whether I manually enter wi-fi config manually or automatically, the photon seems to connect to my wi-fi network, but can not be found on the cloud and remains in blinking mode.
C:\Users\Michael\Downloads\dfu-util-0.8-binaries\win32-mingw32>particle setup
_ _ _ _
_ __ __ _ _ __| |_(_) ___| | ___ (_) ___
| '_ \ / _` | '__| __| |/ __| |/ _ \ | |/ _ \
| |_) | (_| | | | |_| | (__| | __/_| | (_) |
| .__/ \__,_|_| \__|_|\___|_|\___(_)_|\___/
> Setup is easy! Let's get started...
? Would you like to log in with a different account? No
! PROTIP: Hold the MODE/SETUP button on your device until it blinks blue!
! PROTIP: Please make sure you are connected to the internet.
> I have detected a Photon connected via USB.
? Would you like to continue with this one? Yes
! The Photon supports secure Wi-Fi setup. We'll try that first.
! PROTIP: Wireless setup of Photons works like a wizard!
! PROTIP: We will automagically change the Wi-Fi network to which your computer
is connected.
! PROTIP: You will lose your connection to the internet periodically.
? Found "Photon-R9E2". Would you like to perform setup on this one now? Yes
! PROTIP: You will need to know the password for your Wi-Fi network (if any) to
proceed.
! PROTIP: You can press ctrl + C to quit setup at any time.
> Obtained magical secure claim code.
! I am unable to automatically connect to Wi-Fi networks (-___-)
? We can still proceed in 'manual' mode. Would you like to continue? Yes
? Please connect to the Photon-R9E2 network now. Press enter when ready.
> Now to configure our precious Photon
! PROTIP: If you want to skip scanning, or your network is configured as a
! PROTIP: non-broadcast network, please enter manual mode to proceed...
? Would you like to manually enter your Wi-Fi network configuration? No
? Please select the network to which your Photon should connect: (Use arrow keys
? Please select the network to which your Photon should connect: NQDSL
? Please enter your network password (or leave blank for none): 1234567890
> Here's what we're going to send to the Photon:
> Wi-Fi Network: NQDSL
> Password: 1234567890
> Security: WEP PSK
? Would you like to continue with the information shown above? Yes
> Obtaining device information...
> Requesting public key from the device...
> Setting the magical cloud claim code...
> Telling the Photon to apply your Wi-Fi configuration...
> The Photon will now attempt to connect to your Wi-Fi network...
> Configuration complete! You've just won the internet!
? Please re-connect your computer to your Wi-Fi network now. Press enter when re
? Please re-connect your computer to your Wi-Fi network now. Press enter when re
ady.
! It doesn't look like your Photon has made it to the cloud yet.
? What would you like to do? (Use arrow keys)
> Reconfigure the Wi-Fi settings of the Photon
Check again to see if the Photon has connected
As you can see, I have downloaded DFU-Util, and tried a factory reset. Only problem is the Photon DFU Mode drivers do not seem to be installed so I get this error: