There are two reasons for this compatibility issue between the usb storage device and ps4.
Ps4 keeps saying usb storage device not connected.
Connect the dualshock 4 controller with a usb cable that transfers data and press the ps button.
If the ps4 can t recognize the usb storage device perhaps there s an error in the usb port in which the usb storage device is connected.
Open device manager expand universal serial bus controllers right click usb root hub full steps.
Then go to your ps4 and plug into the flash drive once you have a plug in your flash drive go to the settings on your ps4 and click on application saved data management then press x on the saved data in system storage then copy to your usb storage device and now you go to each game and then select the data to the flash drive when you replace the hard drive then you have saved all your games in flash drive.
Now check whether the update process would work or not.
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In most cases this error message only shows up with the usb storage devices used as an extended storage.
Right click windows icon and select power options change plan settings change advanced full steps.
Open device manager expand universal serial bus controllers locate usb drivers.
Release it after you ve heard two beeps.
To enter safe mode turn off the ps4 by pressing the power button.
Press and hold the power button.
This option updates the ps4 system software via direct download external storage device.
Try to switch to the next port and reboot the ps4.
The the usb storage device is not connected error message indicates that ps4 system is unable to recognize the usb storage device connected to it.