Here's what I just got done doing:
*Put back original hotspot, unfroze any apps I had in Titanium Back, reverted xposed back, tried OTA again...Failed
Went with the LG installer: Took forever for drivers to load and show up (10 min). Running on Windows 7. LG installer loaded with phone and it took 45 minutes to take the 2gig update. The update took and it didn't wipe out any of my apps or data, etc. Lost Root
Went here and restored root. Phone is up and running.
I am assuming you are either having a driver issue or a connectivity issue with your G2 to computer.