Error when making a bootable macos usb installer

Sounds like the installer may be corrupt or perhaps Apple introduced a bug with the installer when creating a bootable macOS USB installer. Try deleting the app and emptying the Trash. Download & try again. If it still happens, the try booting into Safe Mode to try the Terminal command again as yo may have some third party software installed that is interfering with the normal operation of macOS.

Since the command begins to work, it means you had your USB stick properly named & formatted since the tool reformatted it. The error occurred afterwards when trying to extract the contents onto the USB stick. Seems like there is something wrong with one of the files within the installer app bundle.

Which version of the macOS installer did it download? Is it the latest version v12.4? or is it the older v12.3.x? Perhaps you can use the command line to force a download of the other version of the installer which may not have this issue. Again, make sure to delete the current installer app and empty the Trash. Then use the following commands to see which versions of the macOS installer are still available for download. Then use the command line to download that specific version of the installer.

softwareupdate  --list-full-installers

Choose one of the versions and use the following command to download it making sure to use the correct installer name & version in place of "12.3.1" in my sample here:

softwareupdate  -d  --fetch-full-installer  --full-installer-version  12.3.1

Here is an article with more details and pictures. I added the " -d" option to the command so it will only download the installer and not begin to run it.

https://osxdaily.com/2020/04/13/how-download-full-macos-installer-terminal/

There is a chance you may need to add "sudo " to the beginning of the last command if the installer does not download since admin privileges are usually needed to access the Applications folder where this installer will end up. It has been a while since I've used this command, so I don't know if "sudo" is needed. If you use the version with "sudo", then you will be prompted for your admin password. Nothing will appear on the screen as you type the password, so you will need to press the "Return" key to submit the password.

sudo  softwareupdate  -d  --fetch-full-installer  --full-installer-version  12.3.1

Is the USB directly connected to the Mac or is it connected using a hub? An C to A adapter is ok, but I have had problems when connected to a Hub.