I have the same problem : Error 208 Headset display disconnected with a red light on the side of the headset.
Was working great (HTC vive with wireless adapter). Did not used it for a couple of weeks and now i get this error.
-Reinstalled Nvidia drivers with the newest one
- ( Wireless is full signal,checked connections everything is fine and using original vive wires)
-Reinstalled Steam VR app
New windows update seems to create the problem here...
Don't know what to do at the moment..