Ok I finally figured it out... if anyone is having the same problem, then please read my post as there are things you must NOT do to ensure this works fine,
I am putting a step-by-step in case anyone needs to read this as a whole solution to get their 32U4 working fully:
A) Your UNO should already be set as a programmer, if you have not done this then please select your UNO board, and set the programmer to "AVRISP MKII" Load the original sketch from example -> Arduino ISP and upload it into your UNO, so now your UNO is your ISP programmer.
B) Connections (just in case someone needs this):
UNO Pin ProMicro Pin:
10 RESET
11 16
12 14
13 15
5V VCC (the one regulated out of LDO not the USB UVCC)
GND GND
So far up till this stage, nothing changed from my original post, all connections and UNO settings are the same...
C) Setting the right board for your 32U4:
The right board for my ATMEGA32U4 and the one that worked 100% is the "Sparkfun ProMicro", this can be downloaded from the following Library (can be set under preferences):
D) Burn your Bootloader (Tools -> Burn Bootloader)
E) Here is what was going wrong and frankly getting on my nerves, don't ask me why, but after I burned the bootloader I went to my sketch and from the menu I selected "Sketch -> Upload using programmer", although this is "by design" and quite innocent from the looks of it, however doing so, causes the board no longer to take any uploads when connected directly from the USB, the problem symptoms are:
- Connected through USB
- The board appeared under Ports nicely like any other Arduino
- But, when "upload"ing anything the RX light flashed quickly and the TX flashed very dimmed, and then;
- The upload fails and also
- The PC or MAC removes the port from the list. as-if no board was there
- Connect the board back and you would see the exact same things over and over again...
F) Solving this: After burning the Bootloader to the new 32U4, do NOT select "upload sketch via programmer", just leave it, disconnect your UNO and then connect your USB and then all will work fine.
G) I tested all that, and uploading light will flash nicely, and serial will also flash TX and RX pins respectively.
Do NOT select "Adafruit Feather 32u4" board from the menu, doing so will cause the RX and TX pins not to flash light when the serial is in use and also your lights will not flash upon uploading your sketch (this is the problem on my original post).
I hope my solution helps, good luck and happy programming !
Cheers
Heider