Red Series flashing red, green and blue after pairing

I have a red series associated with 4 ilumin bulbs and a GE aux switch (no neutral configuration, with an aeotec bypass). Setup has been in place for several months working as expected.
One day, the red series stopped responding, flashing red, green and blue (similar to the boot sequence). Turning power on and off or pressing the config button for 20s did not make any difference. I was eventually able to exclude de device and re-pair it (through SmartThings) but the switch became unresponsive few minutes later, flashing the same sequence again (with the switch electrically turning on and off). After doing a full reset of the switch, and various pairing unpairing attempts, the switch finally failed.
I talked to the Inovelli support team and received a new unit. Once the new switch was installed, I updated it to the latest firmware and paired it. Unfortunately the same behavior occurred again.
It seems that as soon as the switch get paired, and the z-wave mo