When grub4dos script try to load the plop boot manager it hangs. I also try both grub4dos 0.4.5c and 0.4.6a versions. I try to install XP from USB to the internal IDE disk which I know is recognized by WinXP SP3 official ISO disk, so I select the 1st option and check the 'Don't check for and install grub4dos MBR' and 'Do not copy and use DPMS' at the advanced options, as I already know my UDF can start the grldr and I don't need Driver Pack Mass Storage. I create successfully and boot those partitions either through BOOTICE using the U+V2 button, with dummy.sys driver and with WinSetupFromUSB v1.9 FBinstTool. The first one had to be FAT16 32MB hidden, and the second FAT32. It only boot from USB when my UFD is formatted with 2 partitions. My old BIOS has only USB-ZIP and USB-FDD and support USB2.0. If you want to solve the problem with winsetupfromusb, you may want to try (if you are using a UEFI firmware) to enable the CSM (Comparibility Support Module, in practice BIOS, if you have this option) and/or try to change boot order (nowadays on most computer there are two ways to boot from USB, onechanging the boot order in the firmware and one changing this setting on-the-fly at boot time prssing a hotkey - like F8 or F11/F12 and sometimes oine of the two methods works and the other one doesn't).

WINNTSETUP (but if you choose this latter there is an initial learning curve to create the PE in which to run it): In any case for Windows 10 you would be probably better served by either Rufus: Very likely your computer is one of those that (for some strange reasons) has issues with MBR style devices if the firmware is set to UEFI only (maybe a DELL?) or that (again for strange reasons) doesn't 'like' the grub4dos bootcode (Insyde BIOS?). I made a bootable win10 with winsetupfromusb but the computer doesn't recognize the USB at bootup

Win setup from usb windows 10