I want to highlight one interesting, amusing thing here though.
I had tried putting up a firmware like 8-10 hours back, in the morning. It was same result as mentioned in first post.
In the evening, I was playing with Wifi, WPS button. Then held the reset button and then turned on the power button. For some weird reason, it did boot correctly, WiFi also switched on. DHCP was able to get the correct IP addresses automatically.
After one restart - it's gone to same recovery state though. And, not working now.
Let me know if this can help get to a solution in any way.
Sankalp