The July release of Trezor Suite has raised a new issue where users have a problem with “Device detected in wrong state”. Please follow these steps to resolve the issue successfully.
Reconnect the device without performing any action (do not press any button before connecting the device to your computer) and follow our user manual for updating your Trezor’s firmware: Suite manual:Updating the Trezor device firmware - Trezor Wiki
Generally, the seed should not be required during the firmware update; however, there might be an issue (connection is lost, etc.) and then the device gets wiped and all user data is erased. This is a security feature, that protects your assets against an attack, for example, one that would try to install unofficial firmware on your device.
So if you are not certain, that your recovery seed is correct, check it first by using a Dry-run recovery: User manual:Dry-run recovery - Trezor Wiki.
Trezor Suite also offers a Dry-run recovery option, please go to Settings in the top right corner, and in the tab Device, select the option Check backup.
We always recommend, that our users perform the Dry-run recovery as soon as possible, to make sure, the Recovery seed you have written down, is correct, and you will not lose your assets in case your device gets wiped, lost or broken.
Make sure you are running the latest version of Trezor Suite (https://suite.trezor.io/).
We are aware of this issue and it should be fixed in some of the next releases, for more information, follow the progress in the GitHub issue: New onboarding - ConnectDevicePrompt inconsistencies · Issue #3971 · trezor/trezor-suite · GitHub