from datasheet of 1704 "8.7.2.1 VBUS valid comparator This comparator is used by hosts and A-devices to determine whether the voltage on VBUS is at a valid level for operation. The ISP1704A minimum threshold for the VBUS valid comparator is 4.4 V. Any voltage on VBUS below this threshold is considered invalid. During power-up, it is expected that the comparator output will be ignored.'" if otg controller expect a valid vbus on isp1704 vbus probe pin maybe this is the reason for timeouts
do a voltage check with a voltmeter . if vbus is below 3.3V this voltage come from isp1707 internals.