Error 38 - Windows 10 installing USB DVD/CD Drive

I understand that you are unable to download onto USB device due to error prompt Code 38. I will certainly help you.

To diagnose the issue, I suggest you to follow below steps and check if it works:

Method 1: Run the Troubleshooter

Windows 10 has a built-in troubleshooter to check and fix issues with hardware and devices. 
I suggest you to run this troubleshooter to check if the issue is with your USB device. Refer these steps:
1. Right click on Start button, select Control Panel.
2. Change the view by option on the top right to Large icons.
3. Click on Troubleshooting and click on the view all option on the left panel.
4. Run the Hardware and devices troubleshooter.

Method 2: Uninstall the USB controllers

As all the hardware devices have drivers associated, similarly USB devices also have it. Sometimes proper drivers are not detected after the initial installation so reinstallation of the drivers helps resolve the issues.

You may check after uninstalling and reinstalling the USB drivers if you are able to connect. You may disconnect all USB devices and then perform the following steps:

1. Right click on Start and select Device Manager.

2. Double click to expand "Universal Serial Bus controllers", right click on the Host Controller,click "Uninstall" and

    click "OK".

(Check if at all there is an exclamation mark along the driver, it suggests issues with the driver installed)
3. Restart the system and Windows 10 will reinstall all USB controllers automatically.

If the issue sill persists, I would request you to check for chipset driver updates that you can get at the manufacturer website. The chipset drivers normally incorporate USB controller drivers as well.

Hope this helps. 

Thank you.

Source: Microsoft