Windows Phone Recovery Tool stuck on 'READING PHONE INFORMATION'. How can I move past this?

There is another possibility:
WDRT identifies phone model using Product Code. If this code is corrupted, then WDRT will fail and report error.

In this case, you have to manually find the Code (printed on SIM slot), download corresponding firmware, and flash it to your phone using a third party software.
Actually WDRT should provide an alternative way to identify phone model, because Product Code can be inquired on Microsoft warranty database using your IMEI. (*No public inquiry webpage, but there is some kind of API.)
 
This worked for me:
if you are booting into the OS your phone will not downgrade. once device recovery is searching, reboot your phone. it will pick it up in UEFI mode and start the download. You will have to reboot it one more time after the download to install the new "old" image.
remember to back everything up first, it will factory reset your phone.
Thanks a lot AaronZollinger! It worked :)
I'll just describe my steps more detailed in case someone don't understand yours:
1. Unplug the phone from the PC
2. Click on "My device was not detected"
3. Select your model and you will enter the "Searching Screen"
4. Reboot your phone (pressing volume down + home button for some seconds until it vibrates) and immediately plug it back in the PC
1. If you take too long to plug it in the PC you will have to reboot it again (the Recovery Tool will show a message to you)
5. The tool will recognize your model, but not the OS or Firmware
6. Click in "Download Software" and wait the process to complete.
7. When finished, click next and check your Battery as the screen says
8. The next screen will try to install the software BUT IT WILL FAIL, don't worry it is normal. Wait (3-4 minutes) until it fails and click Finish.
1. Repeat steps 1-5.
2. Now you will see that the screen will not show "Download" but "Install", click it.
1. You will see the installation progress both in the Tool and in your Phone. Wait until it finishes (2-3 minutes).
1. Done :)
 
This worked for me:
if you are booting into the OS your phone will not downgrade. once device recovery is searching, reboot your phone. it will pick it up in UEFI mode and start the download. You will have to reboot it one more time after the download to install the new "old" image.
remember to back everything up first, it will factory reset your phone.
Thanks a lot AaronZollinger! It worked :)
I'll just describe my steps more detailed in case someone don't understand yours:
1. Unplug the phone from the PC
2. Click on "My device was not detected"
3. Select your model and you will enter the "Searching Screen"
4. Reboot your phone (pressing volume down + home button for some seconds until it vibrates) and immediately plug it back in the PC
1. If you take too long to plug it in the PC you will have to reboot it again (the Recovery Tool will show a message to you)
5. The tool will recognize your model, but not the OS or Firmware
6. Click in "Download Software" and wait the process to complete.
7. When finished, click next and check your Battery as the screen says
8. The next screen will try to install the software BUT IT WILL FAIL, don't worry it is normal. Wait (3-4 minutes) until it fails and click Finish.
1. Repeat steps 1-5.
2. Now you will see that the screen will not show "Download" but "Install", click it.
1. You will see the installation progress both in the Tool and in your Phone. Wait until it finishes (2-3 minutes).
1. Done :)

We need a medal here!This works thank you!:excited:
 
Try to uninstall Windows Device Recovery Tool and also remove (in Programs and Features):

  • WinUsb colnstaller
  • WinUsb Compatible Driver
  • WinUsb Driver ext
  • Lumia UEFI Driver
  • Emergency Driver

Restart your PC and install WDRT again.
 

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