I got this problem. With ubuntu 20.04 and 20.10.
The downloaded iso was ok. Checked by SHA-256 hash sum.
Bootable usb device made with Rufus under Windows 8.1.
Got bloc errors : 2. But no problems found with chkdsk.
The check at the linux set up start gives 1 error too.
The squashfs errors occur.

With ubuntu 20.10.
On the usb device there is a directory casper with a large file 
filesystem.squashfs.
Compare for that file the SHA-256 hash sum between original iso and usb device 
one : got different. But sizes was the same.
Just rewrite this erroneous file from the original iso to the usb device. Ok 
with a simple drag and drop.
Usb device file SHA-256 hash sum now OK.
Check at the linux set up start now OK.
And finally linux install was OK, with no more the SQUASHFS errors.

Chris.

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https://bugs.launchpad.net/bugs/1874662

Title:
  Corrupted installation medium

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