I've installed Lubuntu on other pendrive after boot and than successfully install Lubuntu to target pendrive.
Caution: 2GB/32GB board have some other issues with booting:
- booting is always from windows boot manager, efi cannot save settings properly, boot order is always the same after reset.
- with old kernel, before 4.5 there is no audio
Above method doesn't work with SystemRescueCD, maybe there are needed other tests and trials.