Yikes! Invalid device signature. Fail to burn bootloader and read fuses
If you are burning the bootloader through the IDE it won't expect the CKDIV8 fuse to be set.

I have a bootloader programmer which you could use to reprogram the bootloader. You just need another Arduino (eg. Uno, Mega) and connect 6 wires between each of them like this:



The sketch for programming the bootloader is available on Github:

https://github.com/nickgammon/arduino_sketches

You want the one in the "Atmega_Board_Programmer" subdirectory.