The usb stick has to have FAT32 format. Windows often messed this up, so use rufus.ie to format and test your stick for errors.
As the website says, you can't update from 1.x to 3.x, so you have to ask how to do it the correct way. Maby you have to load a special updater first. Haven't seen instructions for that anywhere. I got mine with a 2.x version.