Can you please share the screenshot of the dialog?
The authorize Device seems to be greyed out so won't work. I am then getting a message saying that ADE 3 is not working and Windows shuts it down. It originally did it on version 2 and i had a look on the kobo site and it said to use version 3 so I downloaded that but it still seems to have the same problem.
Please select the device, then only those menu items will be enabled. In the screenshot, it appears as your selection is in All Items.