Based on your answer, I tried seeing if a second Xbee I have that is installed on an Xbee adapter would work when connected to XCTU via USB with FDTI friend and it still will not find that one either.
I have been told by someone that if you use the incorrect type of USB cable such as a charging cable that might cause an issue. And the regulator on the Xbee adapter is getting extremely hot. Could it be the cable?