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Update Nov 6, 2018:

The root cause is currently identified as an issue with USB interfaces introduced by iOS 12.1. As the issue originating from the Apple firmware, also the fix for this behavior should be provided by Apple. Workaround mentioned above can be used to process these devices for now.


Resolutions:

Blancco Resolution:  3.8.4 due out Dec 11th, plans to include a Factory Reset option included in the workflow, which places the phone in a boot mode Blancco can recognize.

Apple Resolution:  Apple is planning to address the issue in 12.1.x, due out on Dec 11th.