That happens with certain USB devices - sometimes even on my windows 10 base machine. It knows the device is there, knows what type it is and just won’t recognize it.
Often disconnecting and reconnecting will help, sometimes rebooting the system will help. Some devices just don’t to work at all. I would have it all hooked up and connected to the running VM, and then reboot the OS inside the VM (that should leave the device connected) and see if it recognizes the device on restart.
My inclination if that doesn’t work would be to find a friend or coworker that is on windows and see if they could update it for you.
I am always very cautious with firmware updates, even if everything appears to be working perfectly. So I don’t know if this is a good option or not - but the last option is to try running the firmware update software even with Windows reporting the device as unrecognized. That communication is at a different level than OS support for all the components. So if you run updater, and it detects the hub is there and can communicate to it, it may be able to update even without the OS fully recognizing it. If it can’t recognize the hub and communicate to it, it shouldn’t do anything at all. But I can’t guarantee anything down that path.