As an update I managed to finally get Homey to boot by following the instructions here Homey went offline/ crash
You need to press ALT, then select download full update and again press ALT to get a Next option. My Homey is now 3.0 but unfortunately I had already resetted the device so have to add back all devices and flows. I am happy it seems to work again but if it turns out the update was forced it could have been done in a better way.
