I can confirm that the bug exists (and has a simple workaround).
Mine is an updated UbuntuMate (15.04) and while trying to create a new Bootable 
USB pen drive got the same error. As mentioned elsewhere, opened up the pen 
drive in fdisk, removed all partitions, created one partition as 'c' type (VFAT 
...), exit, mkfs.vfat /dev/sdb1. Now when I go back and create the bootable USB 
it works as expected.

My machine:
$ lsb_release -a
No LSB modules are available.
Distributor ID: Ubuntu
Description:    Ubuntu 15.04
Release:        15.04
Codename:       vivid

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https://bugs.launchpad.net/bugs/1294877

Title:
  Error erasing device: Unknown or unsupported erase type `'

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