Me too!
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I just went thru a couple days of sync hell with google and my new phone and my newly re installed copy of chrome on my win8 machine. Turns out the problem was back when I used chrome a couple years ago, I was NOT using sync for my phone at the time; i was too new to android and just didn't know to set all that up. For a few reasons, i ended up uninstalling Chrome; used another browser for the past year+. During this time, i eventually learned how to sync that phone so my contacts, calendar and everything synced between PC and phone, but I never did reinstall chrome (the old phone was not a good web browser so I didnt need all my bookmarks).
Now that I got a brand new awesome phone and I know much much more about android and syncing, I wanted to sync up my web bookmarks on the phone and PC, so i reinstalled Chrome on PC the other day. Instant RED ALERT on syncing. "Please update passphrase."
The hell was in figuring out the "passphrase" is indeed different from "password" in Google (unbelievably hard to get a straight answer on that difference by the way). But in my case they really did want my old passWORD not PHRASE. This confusion led to much hair pulling.
Also my old way of typing my email address was to capitalize the first letter, which matters no where else in modern webmail, but google still does track that difference..
So after figuring out that all it wanted was my passWORD from my capitalized email address, everything worked! It even gave me the option to "merge" my two "different" login accounts (they were identical email addresses except for that capital letter). So FINALLY after that merging, my syncing worked between the phone and computer and my chrome. You see, before I "merged" the accounts:
PHONE showed the OLD bookmarks i used on my OLD install of chrome (using the capitalized email address).
PC was showing my new current bookmarks. Yeah, trippy
My OLD bookmarks for sites i remember visiting 1+yr ago on PC were the ones my phone showed because the bookmarks in googles servers basically froze in time back when I uninstalled Chrome over a year ago. The passphrase is nornally an extra layer of password to keep your multiple machines synced up. Most people leave that feature off, which means your normal google email login works to syncs every machine you have. (in my case google really just wanted my passWORD from my capitalized email, not my passPHRASE). Its a good thing i remembered that password finally.
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So now that i look in my phone, rebooted it, all my sync settings which were all in RED status (fail) are now green/OK (except for 1), and YAAAYYYY i have my current PC bookmarks showing up in the phone!! Very happy.....
EXCEPT i now see this "SYNC INTERNET" is the one item in this checklist that is RED/FAIL ... DOH!! Only problem is I can't say for sure if that was GREEN/OK before all my recent troubles; I never really paid attention. For all I know, it has been red since i bought the new phone a week ago....
I have been following many threads on this sync issue, I present all my recent experience in hopes that something I did was similar to something one of you did and maybe this can let us glean a little more what the problem is here....