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By forlotto
#61215 Lolin sometimes does not use enough solder on pads of esp8266 may want to check that out. Rather easy thing to add some solder to it had to do that to 2 of mine and helped another fella a while back who had the same problem with communication errors do to this. As far as firmware goes you flash whatever firmware so got me on that one. Anyhow it will work once you figure out how to use it leave DTR on and toggle rts I believe. I doubt it is a dud as you say I would almost bet money on it. It is likely something you are doing or very easily fixable as described.
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By Liam
#61230 Thanks forlotto, I inspected the board with magnification and while the ESP8266 itself looks to be soldered fine, there's a very tiny 8-pin chip marked "471" that looks to have an unintended solder bridge across 2 of its pins, so that's probably it. I'll stick some flux on and give it a touch when I get chance, and add a bit extra to the ESP8266 for good measure.
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By forlotto
#61251 I went through a lot of the same struggles and posted about what I did to fix the issues a while back I do have a lot of posts probably I really don't know but you can look to them for more info if you want it has been over a year since using LUA firmware went with basic and never looked back but ... I know a lot of the odd quirky things about the esp8266 and how to get them functional it is mostly persistence and testing out different things for hours on in that got me to understand that they are far from perfect when it comes to dealing with them and even when you do get them going LUA likes to drop out in the middle of uploading data sometimes. Just wait until you write your first loop that keeps you from being able to do anything I learned how to deal with this best was to flash between from float to int or vice versa then preform an erase to clear everything in memory then flash the build I wanted.

The kicker is I could not see solder with my magnifying glass either it actually would program the flash but I kept having intermittent issues with it finally I stuck my finger nail and just pulled up on it a little and i notice it was lifting so when it was set down it looked fine but did not work well all the time. Anyhow dunno which chip you are talking but from my own use I've only ever had problems with the ESP chip.