SplitCam was the culprit
As this was the first thread that listed on Google search, I'm posting despite its age.
This just happened to me following switch-on some hours ago.
My motherboard only has one PS/2 port which is normally used by the keyboard - my everyday mice are wireless USB. I do have a spare PS/2 mouse, so I had to use that and continually swap mouse/keyboard, rebooting each time to have the devices recognised. Tedious.
After trying all of my three USB wireless mice and another USB cable, and testing all on my second machine (they all worked), I looked elsewhere. Under Device Manager, all USB entries bore the yellow exclamation mark. ALSO, so did two SplitCam device entries. AHA! Prior to switching off I had followed my normal practice of running Autoruns.exe and unticking all the usual unnecessaries stopping them from running at Startup - updaters, helpers, keyloggers; crap from many, including Crap Cleaner, (which is a bit of a joke). This clean included unnecessary SplitCam entries - I never used it after the first test run, and why would you want anything like that to start at boot? You use it when you use it! Well, I ran IOBit Uninstaller to get shut of SplitCam, and its deep scan found hundreds of leftovers, AS DID I, later, in various Windows directories, and tons in the Registry. It had insinuated itself EVERYWHERE - in all Registry entries for both Audio and Video, drivers, codecs, facilities, everything. It took me ages to delete them all.
It also took me ages to get back into Windows. Repair failed every time, Safe Mode never happened, it just kept rebooting. Sadly, I can't remember what I did to get back into Windows, but when I did I searched Computer and Registry for remnants, and, as I said, found absolutely tons. I deleted everything I came across.
My PC may not boot when I next try, or perhaps all the USB ports will disappear again. However, wiping each and every occurrence of that piece of nasty awfulness gave me sufficient pleasure that I don't mind if I'm forced to reinstall Windows. I really hate SplitCam right now - remember the name, and steer well clear. Or at least don't stop it Starting at boot or it'll throw a hissyfit and take out all of your USB ports with it. Shame on you SplitCam. If you weren't being malicious then you need to find better programmers. If I was rich, I'd sue you for the trouble you caused, and may yet cause, as I still have to switch off for the night.