Evan,

I renamed the "packages" directory to "applications" and re-tested.  
The installer completed the installation!
Installer finished cleanly and without errors!

Do you know why this is only an issue when using USBs and not on other
media?

Thanks for looking into this.

-- 
Custom Ubuntu ISO do not work with usb-creator
https://bugs.launchpad.net/bugs/497942
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