I have an issue with Chrome (v20.0) and its Sync feature. Recently, I began seeing an orange exclamation mark next to my wrench icon. When I click the icon I see a line that says "Sync Error: Update Sync passphrase..."

Clicking this brings up a window telling me that I have data encrypted with a different version of my Google Account password. None of the last few passwords I've used work for this.

When I follow the instructions to stop and reset Sync via Google Dashboard, namely to click the "Stop sync and delete data from Google"

The status changes to "in progress. Please reload..."

However, after 5-10 minutes, I'm right back at the screen that says

And my wrench icon still has the Sync Error exclamation mark

I'm at a loss. I've performed the above steps from each of my computers with the same result each time. Does anyone have any steps I could try, or a solution that got you out of this same mess?
Of note, I'm using 2-step verification and application specific passwords for all my Chrome Sync installs (home laptop, home desktop, work desktop, etc.).
Thank you for your help!