Here's an update on my situation.
Station Mode was off in my case.
I control the Seestar with an Android tablet which recently updated to Android 14. It appears that Android 14 is the cause of the firmware update failures.
My phone is still running Android 13 however, so I decided to connect it to the Seestar and see if the firmware update would succeed. I'm happy to report that it did! When I reconnected to the tablet, everything was normal and the latest firmware - v2.42 - was shown.
If you're having similar issues, check the Android version of your device. If it's Android 14 that's probably the reason. Hopefully ZWO will be able to find and implement a solution before the next update.
Don