I tried different methods. The Microsoft Update Utility finds update 17.1.1406.01. After letting it install, the bluetooth adapter 4.0 disappears from the list of device manager.
If I manually try to install the software, I'll get the same results.
I had to install the previous 17.0.1405.02 again for my device to work properly.
Another method I tried is to go into add and remove programs and after the uninstall of ProSet Wireless Bluetooth Software, Windows 7 will installs it's built in driver which is 6.1.7601.17889 dated back on 6/21/2006.Then the adapter will show generic device in device manager.