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Sorry this happened to you. One thing every dealer should tell people about during the pre-delivery walk-though is the manual key blade and how to use it (and check to see if the fob you're using has a manual key blade!), and the key fob position in console to enable emergency reading of the key.
Funny you should say that about making sure the blade is in the fob.. one of my three keys doesn't have one.
 

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Just encountered a huge issue last night. I was out running errands and went back to my car, and the door wouldn't unlock. I tried using my key fob and nothing happened. I ended up using the key inside of the fob to get the driver's door open, but the car still would not start. Infotainment system worked fine, AC worked fine, but car did not detect my key and wouldn't move.

I called the dealership, but they told me very nicely to go kick rocks. I tried using the SOS and call buttons in the car above me, but nothing happened. I called Volvo using my phone, and the rep told me to put my key in my cup holder on the key symbol. I told him that there was no key symbol in my cup holder, but he told me to it anyways and shift to drive. Nothing happened, so he put in a tow request for me. after 30 minutes, I finally get a text telling me that the tow truck is 90 minutes away.

I do some research and I find that one way to at least drive the car is to open up the center storage behind the cup holders, and place the key on the key symbol. Doing so and shifting did allow me to start driving, but I got a "sos" popup and a sos symbol on my dash. I still can't lock or unlock the car, but at least I can drive it. I have have a service appointment Monday morning with the dealership to see what the issue is, but I suspect it has something to do with the new update. I've some minor issues with unlocking my car ever since the update, so I'm thinking it broke something.

TImeline of issues:

1. Updated to 2.3 early in the morning.

2. Car would intermittently not automatically unlock and open when I put my hand on the handle, even though I had my key in my pocket. Unlocking manually with the fob would still work, and the car drove fine.

3. Had major issues charging at EA stations. One station didn't detect my car even after getting reset by customer service, and I had to plug and unplug 6+ times at another station before it would correctly start charging. I chalked it up to EA being EA at the time, but I wonder if it was a symptom of the bad update.

4. Late afternoon, car would not unlock automatically. Fob also did not work.

5. I unlocked the car manually using the key inside the fob. Alarm sounded, and it would not turn off no matter what I did. Alarm eventually went off on its own.

6. Going into the system menu, the "Security Update" icon was red with an exclamation mark. Selecting the icon took me to the updates screen which showed no issues and displayed I was on 2.3.

7. Trying to factory reset the car gave an error that stated the there was no communications with telematics. However, the car had 4G service.

8. It would have taken 2 hours to get a tow truck to me using Volvo Care. I'm in the middle of Chicago, so I'm not sure why it would take so long.

9. Dealership was supremely unhelpful as it this after 5 and their service department isn't open on Saturday. I made an appointment on Monday, and they were noncommittal about providing a loaner.
 

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This happened to me twice, both times at the same gas station. I called the dealership, and they had no idea what I was talking about. I believe the metal canopy of this very old gas station was blocking the signals. I'm not sure if that would bve your issue.
 
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