Are you using it with Windows XP? If not then you could try using XP and seeing if it makes any difference.
I also bought MPPS v16 from china and it wouldn't work for me with Mk5 Golf. It would ID the ECU but could not read the flash (failed at 0%). In the end I bought MPPS v13 which worked fine. Your issue is probably due to poor hardware from china like mine.
Hope this helps.
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