I'm wondering in the IDE update whether you're applying the v2.0.0 update as per the info in that section (for that ESP01 board).
What I did was completely erased an ESP8266, did it as per those docs and then downloaded one big 512k binary. It should have basically the same effect.
It's an odd one because I dug out a blue ESP8266 on a Pico and flashed via the Web IDE to check that it'd be ok, and it was fine - so I wonder what's different in your case...
Still, at least you have it working now with the latest firmware!
Espruino is a JavaScript interpreter for low-power Microcontrollers. This site is both a support community for Espruino and a place to share what you are working on.
What I did was completely erased an ESP8266, did it as per those docs and then downloaded one big 512k binary. It should have basically the same effect.
It's an odd one because I dug out a blue ESP8266 on a Pico and flashed via the Web IDE to check that it'd be ok, and it was fine - so I wonder what's different in your case...
Still, at least you have it working now with the latest firmware!