Yers, the exact same thing happened to me. If you notice on the recovery screen, the last option was to press F9 to use a different operating system. I did that, and it booted into my Old faithful...

My drive works fine in Windows 7. I used the drive to burn the iso to install Win 10, and I used the resultant DVD in the drive to install win10.

The drive is detected in Windows 7 using Belarc...