The problem isn't user privileges.

bfgminer was originally written for posix-compliant operating systems that consider all devices to be files where you can set access to them by user permissions.

Windows doesn't have the capability to limit access to USB devices by user privileges.

User privileges are only available at the filesystem level, and since Windows doesn't consider non-storage devices to be filesystem components it's not possible to restrict permission to them.

This is not the same as the privileges required to install drivers for a device. You must have administrative privileges to install a device driver. Windows assumes that if you  have administrative privileges to install the driver you should be allowed to access the device even without elevated privileges.

Because of this the application doesn't know the difference between being blocked from accessing the device by the OS because of user privileges and the device not responding due to any of the issues I listed in my original post.

It only checks if the hardware is responding. If it doesn't accept commands the application assumes it's because of privileges and displays the reported error.

That said, the most likely cause of this error is that the device was detected by Windows when it was plugged in because your hub provides enough power for the USB interface, but the device can't be accessed because the hub cannot provide enough consistent power to operate the FPGA.

I was able to determine this was a problem by testing with both USB2.0 powered hubs and USB3.0 powered hubs.

Try replacing your hub with a USB3.0 hub. The worst case scenario is that you send the hub back to Amazon with free shipping because it didn't fix the problem. On the other hand, if it does fix your problem you've only lost the cost or opportunity.