WUDT

Interesting article HERE

To make proper ISO please use ImgBurn which is free and you won’t end up being asked to buy a full version.
To format the USB stick properly please follow the below instructions:
Start command prompt as Administrator and type diskpart
type list disk
type select disk and number of your USB disk ( like select disk 1 )
type clean
type create partition primary
type select partition 1
type active
type format quick fs=fat32
type assign
type exit to exit the diskpart utility
type exit to close command prompt

But it still does not work for me. I think I spent enough time on this and will try to complete this task from my Linux instead.