You're not listening...the nc command is used to "copy" the firmware to the router.
The WinSCP screenshot you posted shows you have already done that...
The next command you should run is in the OpenWRT instructions settings section "install firmware with current settings". Scroll down to that location on the page.
root@(none):~# sysupgrade /tmp/lede-17.01.4-lantiq-xrx200-BTHOMEHUBV5A-squashfs-
sysupgrade.bin
Image metadata not found
Use sysupgrade -F to override this check when downgrading or flashing to vendor firmware
Image check 'fwtool_check_image' failed.
So the ran
root@(none):~# sysupgrade -F /tmp/lede-17.01.4-lantiq-xrx200-BTHOMEHUBV5A-squash
fs-sysupgrade.bin
Image metadata not found
Image check 'fwtool_check_image' failed but --force given - will update anyway!
Saving config files...
killall: watchdog: no process killed
Failed to connect to ubus
I have just cracked the case off and the soldering job looks at bit on the difficult side for me. Can I not use the USB port on the back too flash the router again?
No, the USB port isn't usable for that task (you may be able to avoid flashing over the serial console, given that u-boot should still be fine to use tftpboot - are there better recovery methods for uboot-lantiq without needing a serial connection?). But given that you can enter failsafe mode, I really don't understand why softreset and/ or flashing from failsafe mode don't work for you.
What happens if you go back to step 1.
power off the router
access failsafe mode
execute the "firstboot" binary and say yes to deleting the overlay
reboot -f
Given your explanation, that should already unbrick your device.
fwiw, I notice in your original screen shot, when you executed 'firstboot' in failsafe mode, you entered upper case 'Y' instead of lower case 'y' when prompted.
Just curious - have you tried hard resetting the router by pressing and holding the red Reset button for 30+ seconds? This should've execute the same commands as the soft reset which is a bit error-prone as we see.