I would suggest using a tool like Rufus or FAT32 Format (According to the Rufus FAQ it uses the FAT32 Format code under the covers). It’s just safer and should be faster as well.
It might have something to do with how the drive is currently formatted, you can try preparing it using DISKPART. Just be careful you don’t wipe the wrong drive.
I’m pretty sure there are other limitations like some upper limit (2TB or something like that) and I think a label length and character set limit (11 characters and no weird symbols).