A batch of updates around the 31st October included an update for usb-
creator which seemed to solve the problem for me. If you've updated your
Ubuntu installation up to that date at least (if not up to today) you
should have the updated usb-creator and hence I recommend you try making
a USB disk again and see how it goes.

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"Create a USB startup disk" does not create bootable USB sticks - GRUB Error 17
https://bugs.launchpad.net/bugs/285713
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