Are you booting the RX into firmware update mode? Does it ask you to connect the USB drive on the screen?
Have you formatted the USB drive to FAT32 with Master Boot Record (MBR) as opposed to GUID (this is important if you used a Mac to format the drive)?
Did you download the correct firmware (2.21) and unzip it before placing it on the USB drive? Did you also make sure not to rename the file, and is it the only firmware update file on the drive?
You can update to the latest version without using incremental updates.
As for the second issue, you have the deck in CDJ mode instead of VINYL mode. Toggle the jog mode back to VINYL and that won't be an issue.