Hello marcromss and thank you for your reply.
The password is correct. A connection is made and the code is uploaded. It is just the flash portion that fails.
My code size of 51K is only 1/4 of the available flash in the MKR1000 as best I know.
As I stated the example OTA code also fails to flash and it is very small. It also accepts the default - "blank password" , uploads , but then fails the flash operation.
Please confirm that you are using the MKR1000 and that it is flashing OTA for you.