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I formatted the drive to ext4 using Linux first. I then flashed the OS to the stick which creates a 4gb partition, then I expanded the partition to 15gb. You could expand it to the remaining capacity of the drive. I would recommend downloading the very latest version of your OS as I did.

I fixed my issue, I think it was mostly the size of the partition. I expanded it and flashed the OS to the USB again. I also downloaded the weekly iso to keep the updates to a minimum. It works like a dream now. Maybe try similar with kodachi?

https://www.kali.org/docs/usb/updating-kali-on-usb/

So I'm having issues with Kali 20.1 on a persistent USB. Once several partions have been setup, one partition is encrypted. I boot into the encrypted persistence and run "apt update", no errors. I then run "apt upgrade" or "apt dist-upgrade" and at some point the screen goes blank with...