I have uninstalled the USB 3 driver I had. System Rebooted. I checked that there was no USB 3.0 devices in the device manager whatsoever. The system thus was running without any USB 3.0 support. I attached my mobile phone (it's a USB 2.0 device after all). It was recognized (as was my USB mouse) but the problem with the phone would persist.
I installed 2.5.1.28 as you suggested. Rebooted. Problem persists.
I installed 2.5.4.40 that Dell provides. Problem persists.
Again, note that no such problems exist on Linux. Also, I was using the same cable and phone happily with another laptop that did not have USB 3.0.
Also, I tried all ports of my current Dell laptop (all of which are USB 3.0) and the problem occurs with all of them.