Related on this windows driver issue, I recommend to contact with the Microsoft support to figuring out why that hotfix cannot be installed on your pc. If you have installed that hotfix you don’t need to spend more time on “Disable Driver Signature Enforcement” manually.
I would like to help you but I cannot, because the other users successfully installed that hotfix and I don’t see the reason why cannot be installed on your PC.
As the LP-16 does have USB 2.0 connector as well in this case any standard USB 2.0 or USB 3.0 drive should work properly. As the LP-16 has only playback function the drive performance not that critical like on other devices with recording functions. For a best performance please make sure the LP-16 has up to date firmware and you format the drive with LP-16 before you copy the songs on the drive.
We have pretty good experiences for playback purpose with Sandisk Cruzer Fit; Sandisk Cruzer Blade; Verbatim Nano drives