What model SmartBOB?
You list a firmware version. When you go to either the Configure menu, Plugins, PMDX SmartBOB, or the diagnostics menu and then SmartBOB, does it show you BOTH a bootloader version AND this firmware version?
If so, it sounds like the push button on the SmartBOB is either faulty, or the button is being pressed and held pressed (by something, maybe the panel is skewed if you have a PMDX-412/414/416 with the panel), or maybe something is shorting a pin on the circuit board to make it LOOK like the button is pressed.
Does your SmartBOB have both a red and green led, stacked one on top of the other? If so, is it the really the red LED that flashes? With my boards here (PMDX-414 and 424), the red LED is on solid and the green led flashes when the boot loader is running.