The "no bootable device" error might be caused by the USB being formatted incorrectly or by UEFI security or boot configuration settings preventing the Surface from starting from external media.
First, format the USB stick correctly. Surface devices require a specific structure for recovery media. Format the USB stick as FAT32 and use a drive that is 32 GB or smaller. Rather than using the generic Windows 11 Media Creation Tool, go to the official Microsoft Surface Recovery Image page, enter your Surface serial number, and download the .zip recovery package for your specific model.
After formatting the USB as FAT32, extract the recovery package on your computer and copy the contents inside the extracted folder directly to the root of the USB stick. Do not copy the outer folder itself onto the USB.
Next, check the Surface UEFI settings. Make sure the Surface is completely turned off. Press and hold the Volume Up (+) button, then press and release the Power button while continuing to hold Volume Up. Keep holding Volume Up until the UEFI screen appears. Select Boot Configuration and look for USB Storage. Move USB Storage to the top of the boot order so the Surface attempts to boot from the USB before the internal SSD. Secure Boot should normally remain enabled. If the recovery USB still will not boot, you can try changing the Secure Boot configuration to Microsoft Only or temporarily disabling Secure Boot. Select Exit and restart the Surface.
To force the Surface to boot from the USB, turn it off and connect the USB stick. Press and hold the Volume Down (-) button, then press and release the Power button while continuing to hold Volume Down. Release Volume Down when the Microsoft or Surface logo appears. The Surface should then attempt to boot from the USB and load the recovery environment.
If the USB still does not work, you can try removing the problematic Windows update through Automatic Repair. Turn the Surface on and, as soon as the Windows or Surface logo appears, hold the Power button until the device shuts off completely. Repeat this process three times. On the fourth attempt, allow the Surface to boot normally. Windows should enter the Automatic Repair environment. Select Advanced Options, then Troubleshoot, then Advanced options, and select Uninstall Updates. Choose Uninstall latest quality update to remove the update that may be causing the login-circle loop.
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hth
Marcin