After updating the firmware on NRF9160 Connect DK LED 3 does not turn on and AT commands in LTE Link Monitor yield Error: AT timed out

After updating the firmware on NRF9160 Connect DK (using mfw_nrf9160_1.3.1.zip as well as the ltem asset tracker hex file) LED 3 does not turn on and AT commands in LTE Link Monitor yield Error: AT timed out

I have tried erasing and re-flashing the modem firmware but this yields no change. 

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