Create disconnected template failure

I am trying to create a disconnected template and it is failing on making the USB drive bootable.  I have tried this on 2 machines with the remote console with both a 128 G and 8 G USB stick.  I have the 9.6 SP1 console on a Win7 x64 machine and an Win8.1 machine.

Checking the provisioning.log on the remote console machine, it shows this error:

ERROR POfflineProvisiong  1/20/2015 4:00:21 PM  : Could not make format USB.

ERROR POfflineProvisiong  1/20/2015 4:00:53 PM  : Could not make USB bootable.

Any idea why this may be happening?