I can't decide. When I first started this topic, I envisioned a Loop Back Test as something that would be applied to a board that recently was working correctly but now had a suspect processor.
"Troublesome USB Cable" is also a common occurrence. Your step #3 would certainly help diagnose that problem.
"Failed to Install Driver" is also common. Your step #3 would help.
I prefer a short simple test (10 or fewer steps) with short simple steps (each step is a single action with an expected result; typically one or two sentences). At this moment, I'm leaning towards your step #3 being a separate sticky.
Thoughts?