Android 4.3 Issue 58277

It appears that the USB Host API in the Android 4.3 release does not reliably work on some Nexus 10 and Nexus 7 2nd gen. devices.  As a result programs that require this functionality many not work properly (Gallery, Nexus Media Importer, etc)  This can not be fixed completely without an Android update, but these steps work-around the issue for many.

Work-Around:

This has worked 100% on my Nexus 7 (2013) which usually has the issue 50% of the time after a reboot.  

1. Disable any live wallpapers
2. Hold the device in Portrait mode
3. Open Android Settings and make the following temporary changes
4. Under Security -> Lock Screen.  Select None
5. Under Accessibility -> Auto-rotate screen.  Make sure it is NOT checked
6. (Nexus 7 2013 Only!) Under Language and input -> English (United States)
7. Press and Hold Power until you see "Power Off"
8. Tap OK on Power Off
9. After shutdown, press and hold Power 3 seconds to restart.
10. Run OTG Troubleshooter and follow the instructions.
11. Repeat steps 7-10 until you get "All OK!"  If you have repeated this more than 5 times, see the note below*

More information here:

https://code.google.com/p/android/issues/detail?id=58277

Factory Reset

*If after 5 times the USB devices still show "Protected", it is unlikely more reboots will resolve the issue.  If you are willing, many have reported that a factory reset has resolved the issue.  As this issue only can be truly resolved by an Android update, USB Host applications like NMI will not work on your device until Google fixes the issue.