Yes, I have exact same problem

This is steam response, basically useless:

First, make sure you’re using the provided power supply unit (PSU) and don’t have any docks, hubs, SD cards, or other peripherals connected to your Steam Deck

Start by plugging it in using the provided PSU. A solid white LED indicates the Deck is drawing power. Leave it charging for a while and try again.

If the LED remains off or is blinking, then the Deck isn’t receiving power. Please try the following:

Unplug and re-plug your PSU from the Steam Deck; wiggle the plug a little to ensure it’s plugged in all the way

Try plugging the PSU into a different power outlet in your wall

Try an alternate USB-C PSU if you have one available

What is the Status of the white LED light after trying the above?

It would also be useful to us if you can confirm whether you’ve made any modifications to your device recently, such as opening the unit, changing BIOS and/or system settings, or installing any third party software or tools.

I just sent support question. Will update here what they said.

Nope, still same error. I will contact steam support.

I just bought refurbished sd and I cannot complete setup process because of this error. I don’t know if this is exact problem but it is trying to update and in the middle of the process (40-50%) it is failing with message you described.