And... I fixed it! "PowerEdge: iDRAC Recovery Procedure with firmimg.d7" was key to re-enabling Lifecycle services.  The imediate noticable improvement was the iDRAC would report Done right away after the memory was configured.  I would still get the iDRAC initialization failed message later on.  Hit F10 to enter the Lifecycle services and  reset the iDRAC configuration to default.  The rest is a few reboots and re-configuring the iDRAC (or System) settings. To get the firmimg.d7 file, download the iDRAC firmware for Windows.  It can be extracted using "unzip -L ".  Unzip it in a subdirectory because it does not create its own.  The firmimg.d7 file is under the payload directory. I did clear the NVRAM at one point with the jumper, but that didn't seem to help.  I'm not sure if it contributed to the final solution.
I have a pair of identical R820 systems.  I upgraded the iDRAC on the first unit from 2.61.60.60 to 2.63.60.62 without any problem.  I then attempted the same from the 2nd unit, but the iDRAC would no longer respond afterwards. The update dialog on the 2nd unit went like this and seemed to finish ok. .... iDRACThe version of this Update Package is newer than the currently installed version.Software application name: iDRACPackage version: 2.63.60.62Installed version: 2.61.60.60....Device: iDRACApplication: iDRACUpdate Successful.The update completed successfully. ... I then did a cold boot of the system, the Lifecycle Controller shows as DISABLED, and later the message "iDRAC initialization error" appearsManagement Engine Mode: ActiveManagement Engine Firmware Version: 0002.0001Patch: 0005Build: 00A7F1 to continue, F2 to run setup.   The OS will boot, fans on full blast.  I tried running the firmware update a 2nd time, but it just times out. I've tried recovering from a DRM created SMART ISO and a PER820 Platform Specific Bootable ISO, but both of those hang during inventory collection. I was able to boot into a SLI ISO.  The BIOS and H320 controller firmwares are already the latest.  However, DSU refused to update the iDRAC complaining of a "partial inventory". I've already tried powering the system off and "flea" draining the power from the iDRAC. What's the next thing to try to recover the iDRAC?  SUU?  Any other suggestion or more detailed steps to try?
R820 How to recover from a bad iDRAC firmware update?