Update...
Here is what the device driver shows...and reminder, this has happened on two separate Surface Book 3 devices...
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For our remote users, I prefer using the Surface Book line of laptops and they have worked well for us except of a problem right now.
We use a Metal Building Design Software that requires a USB hardware lock in order for the software to start up and run. This lock worked well on Surface Book 1 and 2 but it fails on Surface Book 3. It just blinks and says HARDWARE LOCK INACTIVE. Yet it works fine on desktops and one Surface Laptop someone has. So something in the USB drivers or architecture of the Surface Book 3 us causing this problem.
I really need this to work and I prefer to keep using the Surface Book line. The vendor suggested it may be the laptop but this is the second Surface Book 3 we tried this one and this USB lock is required to make the software work.
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Found this on another post and this was the resolution for me...
Go into Regedit...
HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\DeviceGuard\
Scenarios\HypervisorEnforcedCodeIntegrity
Then set the DWORD value Enabled to 0 and reboot. It worked perfectly.