Copying the Media Creation Tool to the USB drive worked for me but I was curious to try a few things.
It appears that running the Simple Volume Wizard fixes the problem without having to copy the Media Creation Tool to the USB drive.
This can be accessed in Computer Management > Disk Management.
Right click on the USB drive in the lower (graphical) part of the window and select Delete Volume.
Click Yes to the warning. If there are any volumes remaining, delete those also.
The entire USB drive should now show as Unallocated.
Right click on it again and select New Simple Volume. (You may have to perform this step twice as it sometimes does nothing).
Click through all the windows in the wizard using the default settings, selecting NTFS as the file system.
A new volume will be created.
Now run the Media Creation Tool without copying it to the USB drive.
Hope this helps.