Able to reproduce this on 54.0.2800.2/8619.0.0 (Official Build) dev-channel- Quawks

Note: After inserting the USB stick in to device>> and after clicking on Ctrl+Reload+Power button>> It's is showing the recovery is in progress>> and after some time it's displaying an unexpected error message

OS recovery is failing on Glimmer, Butterfly, Falco devices too using the same version M54: 54.0.2800.2/8619.0.0 (Official Build) dev-channel (Unexpected error is seen)

Successfully auto update to 8620.0.0 on jerry and speedy.

Recovery logs are present at https://pantheon.corp.google.com/storage/browser/chromiumos-test-logs/bugfiles/cros/630517/recovery_logs/?debugUI=CLOUD

From Recovery logs:
===================================================
Checking /mnt/stateful_partition/unencrypted permission.
RemovePackFiles Failed
Touch(/mnt/stateful_partition/.install_completed) FAILED
Starting firmware updater (/tmp/install-mount-point/usr/sbin/chromeos-firmwareupdate --mode=recovery)
Command: /tmp/install-mount-point/usr/sbin/chromeos-firmwareupdate --mode=recovery
Starting Google_Quawks firmware updater v4 (recovery)...
 - Updater package: [Google_Quawks.5216.204.61 / EC:quawks_v1.6.173-03f40fe]
 - Current system:  [RO:Google_Quawks.5216.204.61 , ACT:Google_Quawks.5216.204.61 / EC:quawks_v1.6.173-03f40fe]
 - Write protection: Hardware: off, Software: Main=off EC=off
mode_recovery: update RO+RW
 Execution failed (1): flashrom -p dummy:emulate=VARIABLE_SIZE,image=bios.bin,size=8388608  -i RO_VPD:_dupe_vpd.tmp/RO_VPD -i RW_VPD:_dupe_vpd.tmp/RW_VPD -w _vpd_temp.bin
 Messages:
flashrom v0.9.4  : f1608b4 : Jul 22 2016 00:33:21 UTC on Linux 3.10.18 (x86_64), built with libpci 3.1.10, GCC 4.9.x 20150123 (prerelease), little endian
No EEPROM/flash device found.
Note: flashrom can never write if the flash chip isn't found automatically.
Warning: corrupted VPD in current firmware - reset.
 * invoke: flashrom -p host --fast-verify -w bios.bin
mode_recovery: update ec/RO+RW
 * invoke: flashrom -p ec --fast-verify -w ec.bin
 Execution failed (1): flashrom -p ec --fast-verify -w ec.bin
 Messages:
flashrom v0.9.4  : f1608b4 : Jul 22 2016 00:33:21 UTC on Linux 3.10.18 (x86_64), built with libpci 3.1.10, GCC 4.9.x 20150123 (prerelease), little endian
Mapping BYT IBASE at 0xfed08000, unaligned size 0x200.
Mapping BYT SBASE at 0xfed01000, unaligned size 0x200.
No EEPROM/flash device found.
Note: flashrom can never write if the flash chip isn't found automatically.
ERROR: Execution FAILED.
ERROR: Execution failed: ./updater4.sh (error code = 1)
Finished after 22 seconds.
Failed Command: /tmp/install-mount-point/usr/sbin/chromeos-firmwareupdate --mode=recovery - Exit Code 1
Firmware update failed (error code: 1).
Rolling back update due to failure installing required firmware.
=======================================================

@abodeti: Can you please confirm  auto update on Quawks.

+dhendrix
this is on m54.

Re#7
AU is successful on Quawks too.

Souvik and I found the problem in #7. It turns out that CL:358012 had an unintended consequence with the dummyflasher that is used in the factory installer and firmware updater scripts.

There is a hacky workaround, but Souvik wants to investigate a better, more permanent solution. So for now we're going to revert the CL: https://chromium-review.googlesource.com/#/c/362721

The following revision refers to this bug:
  https://chromium.googlesource.com/chromiumos/third_party/flashrom/+/af9627666e9f1f8f73c4e433f82b4bcc508a2624

commit af9627666e9f1f8f73c4e433f82b4bcc508a2624
Author: Souvik Ghosh <souvikghosh@google.com>
Date: Sat Jul 23 00:17:49 2016

Fix for chip probing failing with multiple programmers

Addresses an issue introduced with CL:358012 where dummyflasher could
not be recognized be flashrom. This fix improves on a rather hacky,
arbitrary probe flashing process from that Change, but there is still
room for a more well-reasoned, airtight solution.

BUG= chromium:630517 
BRANCH=NONE
TEST=probes correctly for servo-v2 and dummyflasher on link and paine

Change-Id: I05cb76196c4ce585c22338630ea65212897a3277
Signed-off-by: Souvik Ghosh <souvikghosh@google.com>
Reviewed-on: https://chromium-review.googlesource.com/362657
Commit-Ready: David Hendricks <dhendrix@chromium.org>
Tested-by: David Hendricks <dhendrix@chromium.org>
Reviewed-by: David Hendricks <dhendrix@chromium.org>

[modify] https://crrev.com/af9627666e9f1f8f73c4e433f82b4bcc508a2624/cli_mfg.c

Seems like this problem is fixed. 

 abodeti@/Sandeep, can you verify it is working again?

verified in Chrome OS 8719.0.0;54.0.2831.0 on quawks.