Deploying software and updates using Configuration Manager
I probably found the root cause: https://social.technet.microsoft.com/Forums/systemcenter/en-US/aa34d808-09a8-4346-851f-f6f7d80c4e5f/standalone-media-ts-fails?forum=configmgrgeneral
The label (media name) of DVD / USB should be renamed to blank. This is a known issue apperently. But, if I create new .ISO with blank name field via CM console, will it place default name on the media anyway? So is the only workaround manually rename USB media? With DVD you can't do that.