It seems we have a solution on the link:
Added usbcore.autosuspend=-1 as kernel parameter by /boot/armbianEnv.txt file. Eg.: extraargs=usbcore.autosuspend=-1
Works fine now.
I wonder if this is still an issue with kernel 5.7… original issue was on 5.6
hercp didn't have issue with 5.6 on in their c2…. also tested fresh 5.7 and usb worked.
issue above is either edge case, or specific to upgrading
USB on C2 is fragile since I remember … I think its an edge case and there is little to be done here. Closing.