“Failed to find the current TS configuration path” when trying to start and install an OS image from a USB thumb drive

I am trying to start and install an OS image from a USB thumb drive but it’s failing.

If I look in the Smsts.log I see the following:

Booted from fixed disk
!sVolumeID.empty(), HRESULT=80004005 (e:\qfe\nts\sms\framework\tscore\resolvesource.cpp,465)
!sVolumeID.empty(), HRESULT=80004005 (e:\qfe\nts\sms\framework\tscore\resolvesource.cpp,465)
!sTSMDataPath.empty(), HRESULT=80070002 (e:\qfe\nts\sms\framework\tscore\resolvesource.cpp,1425)
TS::Utility::GetTSMDataPath(rsPath), HRESULT=80070002 (e:\qfe\nts\sms\client\tasksequence\bootshell\configpath.cpp,352)
Failed to find the current TS configuration path
ConfigPath::FindConfigPath(sConfigPath), HRESULT=80070002 (e:\qfe\nts\sms\client\tasksequence\bootshell\bootshell.cpp,545)
Failed to find the configuration path.
The system cannot find the file specified. (Error: 80070002; Source: Windows)
Execution failed with error 80070002.

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