Yeah, the folder is present with 92 of those ICON files. I did get that Download screen on my first try, but on consequent tries it goes straight to "Preparing," presumably because the files are already cached on my computer (?).
I'm running Windows 7 32-bit, and SMUE 2.14.1.201312191309.
One correction to my last post: I'm running PC Companion 2.10.188, not 181.
I just tried it myself on Windows 7 64-bit. First, an update was installed, after which I have the same SPCC and SMUE versions as you.
The difference with this new version is, if you disconnect your phone in step 3, it gets stuck on a "checking phone/tablet" screen.
So I tried again and waited to disconnect my phone until the "downloading software" screen in step 5 appeared.
Then the FILE_XXXXXXXXX files were being downloaded to the same folder (C:\ProgramData\Sony Mobile\Update Engine\db\13740270\blob_fs).