So, there’s a few things we can try - but the simple answer to one of your questions is yes, it’s possible you have a faulty device. Can I assume you’ve never had this working anywhere else and you’ve just recently bought it?
First, you mention COM1. I assume, but would like confirmation, that this COM port is visible when the Spider is not connected - ie it’s not related to the Spider being connected?
Second, you mentioned earlier both a USB Client SP and USB Client DP module, do you have both? If so, can I ask you swap out all the cables on each device and try with both the SP and DP, see if that makes a difference? While you’re pulling things apart, can I also ask that you just take a look around the physical socket on the Spider, to make sure there’s nothing visibly wrong, like a bent pin or something. That’s highly unlikely on those small sockets but you never know. Also make sure you swap USB cables, and make sure you’re not using a cheap 3rd party cable but are using the one that came with the device, they tend to be more reliable.
Next, can I get you to try connecting this device in tinybooter mode. To do that, you need to disconnect it form the PC, then turn switches 1 and 2 from the OFF position to the ON position. Once you’ve done that, connect the device to the PC again, listening for sounds, and you should hear it connect, and you should get another COM port appear. If that works, we know that the USB signals appear to be connected; if not, then there’s most likely a wiring issue (and since you swapped all the cables around earlier, that means it is now most likely to be on the Spider board itself).
Assuming that worked, open Fez Config, go into Advanced, Loader update, and choose the G120 (Spider2) option. Go through that process, and at the end of it you’ll need to switch 1 and 2 back to OFF, and disconnect the device, then reconnect it. See what now shows up in Device Manager.