Hello Joseph,
Thank you for visiting Microsoft Community Forum.
As per the issue description, I understand that USB device does not enter into selective suspend. You have already tried a number of troubleshooting steps and made registry changes but that did not help.
I would suggest you to refer the following Microsoft articles for help on this issue.
USB selective suspend feature is disabled in Windows
http://support.microsoft.com/kb/2934123
USB Selective Suspend
http://msdn.microsoft.com/en-us/library/ff540144(v=vs.85).aspx
Important This section, method, or task contains steps that tell you how to modify the registry. However, serious problems might occur if you modify the registry incorrectly. Therefore, make sure that you follow these steps carefully. For added protection, back up the registry before you modify it. Then, you can restore the registry if a problem occurs. For more information about how to back up and restore the registry, click the following article number to view the article in the Microsoft Knowledge Base***How to back up and restore the registry in Windows***
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