Pi 5 Firmware Update Negative Storage

I'm using an 8gb Pi5 with a 128gb microSD as the server and a Windows x64 laptop as client. I loaded the img file to the Pi and the server shows up in the client software. When I try to load the bin file to update the firmware it says there is not enough storage and lists the available storage as negative. The card is empty other than the boot image so there is plenty of available storage. The client is not seeing usb devices from the server so I assume the firmware update is a requirement.

Any ideas why this is happening? Is there any work around?

Thanks.