Exciting to see we've made some progress!
Next, your Other device Hardware ID suggest your CDROM driver installation file may part of the problem too. So this time
> check Windows/inf for cdrom.inf and cdrom.pnf
> Check repository for most recent cdrom_inf folder. If needed, copy just the cdrom.inf from the repository to the Windows/inf folder (Windows will rebuild the pnf on its own)
PLUS: Before you plug in the USB drive, this time also delete C:\Windows\inf\INFCACHE.1 . This forces Windows to rebuild its inf cache file to reflect all Windows/inf updates we've made so far
Plug in USB drive. If USB drive still has a problem, do another trace: unplug usb, run drivecleanup tool, delete ;the current trace, plug in USB, then give me a copy of the latest trace file