Kali Linux threw this error message during the installation procedure. Troubleshooting this was frustrating as none of the fixes, which were about mounting the USB drive to /cdrom, worked for us.
We then decided to play with the options in the utility we used to create the bootable USB, Rufus. Turns out switching from ISO mode to DD mode when you hit START fixed this.
You need to select the option labeled “Write in DD Image mode“, instead of the recommended option.