Question, by USB you mean a flash drive right? USB SD readers have known issues for installing, at least, some Linux distros. That may apply to Windows as well.
This thread has some details and user experiences with Ventoy+Windows.
I really doubt a different USB flash drive would make a difference if yours seems to function fine in all other cases.
I am going to reboot my Framework and take a look in BIOS to see if any ideas come to me!
Edit: So I saw some interesting things in the BIOS. First of all, my two USB-C expansion cards (one used for power, one unused) did not show up in BIOS, although my USB-A card (w/ mouse receiver) and HDMI card (unused) did.
Also, my 1TB 850 drive is displaying twice. What’s up with that? Both in the BIOS and the boot menu.
Do you have USB boot enabled in the BIOS menu?