EDIT:- Sorry if a double post happens, my first post said it's waiting for approval yet my second post actually posted :straight:
This is for UK \ European model.
Briefly what I said in the first post.
I had the same issue with the Windows 10 upgrade not working due to the touch screen being out of sync. Reading around forums everybody suggested a hard reset, this didn't fix the touchscreen being out of alignment and has caused further issues and without being able to hit "next" you are pretty much stuck at the setup screen.
I have found a workaround and it's a bit confusing.
If you load Windows Device Recovery Tool and select the "My phone is not listed" option you can select the US x130q version. The European x130e doesn't appear to have a download attached to it despite it saying there is one available.
Restoring the US x130q get's your phone up and running again at Windows 8.1. However the camera doesn't work and the resolution is bigger which does tie in with the specs of the US model. However I can make and receive calls and use gprs data which is the main thing. Not sure if 4G works as I don't have that. I'm using Virgin \ EE network.
Oddly enough though once installed my phone suggests it is running the firmware listed under the UK model? (see attached image)
If you look at the attached image, despite downloading and installing the x130q version the phone is showing that the x130e version is installed.
So I really don't know what is going on here but if you have a European Model, x130e and are basically stuck then this is a temp workaround.