[Q] USB Debugging always enabled, lost ability to download files from phone.

Hello people.
At the end of 2012 my wife got OTA upgrade (3 in a row) for her HTC One X.
The upgrade broke seriously the USB support on the phone.
Now the phone will turn USB Debugging when connected to a computer. Even though I disable USB Debugging in the settings! And even when I disable the whole Developers' Section the settings!
When I disable the developers' section the phone asks me to enable the USB Debugging.
Even worse: there is no option to make the phone present itself as USB Hard Drive, and I can't download the pictures and videos from the phone. And since the phone's memory is not removable I'm stuck!
It also seems to not charge while connected to a computer (charges when connected to the supplied charger).

Has anyone observed this?

I've reported the issue to HTC, from where I got just one "We'll escalate the issue..." and then complete silence.

What can I do?

I may be able to pull the contents via ADB, but that's not a solution!

Android Version: 4.1.1
HTC Sense Version: 4+
Software Version: 3.14.401.31

Please advise!