Resetting application data / your nano s won't contribute towards your problem. This problem is created by windows. Not the chrome application, neither the nano s itself.
Were you able to replicate these steps?
- Close any ledger applicatoin running on your PC
- Disconnect your nano s
- Open the device manager (Windows-Logo -> 'device manager')
- Plug your nano s in
- Look at the device manager for a new device which just appeared (you may have to click 'reload' at the top bar). It should have a yellow exclamation mark
- Remove (Uninstall) the device from the device manager
- Open ledger manager
- Connect your nano s / start the update again
Because this should fix your issue of windows not recognizing the nano s.
Let me know which step doesn't work (and the reason it doesn't work).