I was able to solve the 110 error issue by switching from using accessory mode to using the device in connected mode. I suspect this is an issue with the firmware related to accessory mode. If there is anyone else here who has been operating in accessory mode only and is able to try connected mode, that could help confirm my theory. Mosaic engineers seem to be convinced that this is a hardware issue, but I disagree. If anyone is able to help confirm one was or the other it could help get a fix out quicker.
I had this same problem. It turned out to be the USB drive provided by Mosaic. When I tried my own drive (formatted for FAT32) it worked without any issues.