Can't boot from USB, On Mint 18.1

I have removed casper and installed live boot and then created a live system using systemback. ISO size is 3GB. Problem is I am getting following error by booting from both UEFI and Legacy mode.

Error : BusyBox v1.22.1 (Ubuntu 1:1.22.0-8ubuntu1) built-in shell (ash)
(initramfs) Can not mount /dev/loop0 (/cdrom/live/filesystem.squashfs) on //filesystem.squashfs

The ISO works good with virtualbox and my another laptop. Whats wrong with this ? A multimedia distro based upon ubuntu 16.04 worked earlier with systemback at this same machine after following same method. I think I messed up something with BIOS settings ?
Well, My system info is below :

System: Host: HCL-Desktop Kernel: 4.4.0-53-generic x86_64 (64 bit gcc: 5.4.0)
           Desktop: Cinnamon 3.2.7 (Gtk 3.18.9-1ubuntu3.2) dm: mdm Distro: Linux Mint 18.1 Serena
Machine: System: Gigabyte product: N/A Chassis: type: 3
           Mobo: Gigabyte model: H61MS v: x.x Bios: American Megatrends v: F2 date: 06/25/2013
CPU: Dual core Intel Pentium G2030 (-MCP-) cache: 3072 KB
           flags: (lm nx sse sse2 sse3 sse4_1 sse4_2 ssse3 vmx) bmips: 11971
           clock speeds: min/max: 1600/3000 MHz 1: 2999 MHz 2: 3000 MHz
Graphics: Card: Intel Xeon E3-1200 v2/3rd Gen Core processor Graphics Controller
           bus-ID: 00:02.0 chip-ID: 8086:0152
           Display Server: X.Org 1.18.4 drivers: intel (unloaded: fbdev,vesa)
           Resolution: 1920x1080@60.00hz
           GLX Renderer: Mesa DRI Intel Ivybridge Desktop
           GLX Version: 3.0 Mesa 12.0.6 Direct Rendering: Yes
Audio: Card Intel 6 Series/C200 Series Family High Definition Audio Controller
           driver: snd_hda_intel bus-ID: 00:1b.0 chip-ID: 8086:1c20
           Sound: Advanced Linux Sound Architecture v: k4.4.0-53-generic
Network: Card-1: Realtek RTL8111/8168/8411 PCI Express Gigabit Ethernet Controller
           driver: r8169 v: 2.3LK-NAPI port: e000 bus-ID: 02:00.0 chip-ID: 10ec:8168
           IF: enp2s0 state: down mac: <filter>
           Card-2: Realtek RTL8188EUS 802.11n Wireless Network Adapter
           driver: r8188eu v: v4.1.4_6773.20130222 usb-ID: 002-003 chip-ID: 0bda:8179
           IF: wlx0013ef850dd1 state: N/A mac: N/A
Drives: HDD Total Size: 500.1GB (13.7% used)
           ID-1: /dev/sda model: WDC_WD5000AAKX size: 500.1GB serial: WD-WCC2EFW42042
Partition: ID-1: / size: 338G used: 63G (20%) fs: ext4 dev: /dev/sda1
           ID-2: swap-1 size: 1.02GB used: 0.01GB (1%) fs: swap dev: /dev/sda5
RAID: System: supported: N/A
           No RAID devices: /proc/mdstat, md_mod kernel module present
           Unused Devices: none
Sensors: System Temperatures: cpu: 29.8C mobo: 27.8C
           Fan Speeds (in rpm): cpu: N/A
Repos: Active apt sources in file: /etc/apt/sources.list
           deb cdrom:[Linux Mint 18.1 _Serena_ - Release amd64 20161213]/ xenial contrib main non-free
           Active apt sources in file: /etc/apt/sources.list.d/fkrull-deadsnakes-xenial.list
           deb http: //ppa.launchpad.net/fkrull/deadsnakes/ubuntu xenial main
           deb-src http: //ppa.launchpad.net/fkrull/deadsnakes/ubuntu xenial main
           Active apt sources in file: /etc/apt/sources.list.d/nemh-systemback-xenial.list
           deb http: //ppa.launchpad.net/nemh/systemback/ubuntu xenial main
           deb-src http: //ppa.launchpad.net/nemh/systemback/ubuntu xenial main
           Active apt sources in file: /etc/apt/sources.list.d/nodesource.list
           deb https: //deb.nodesource.com/node_6.x xenial main
           deb-src https: //deb.nodesource.com/node_6.x xenial main
           Active apt sources in file: /etc/apt/sources.list.d/noobslab-apps-xenial.list
           deb http: //ppa.launchpad.net/noobslab/apps/ubuntu xenial main
           deb-src http: //ppa.launchpad.net/noobslab/apps/ubuntu xenial main
           Active apt sources in file: /etc/apt/sources.list.d/noobslab-icons-xenial.list
           deb http: //ppa.launchpad.net/noobslab/icons/ubuntu xenial main
           deb-src http: //ppa.launchpad.net/noobslab/icons/ubuntu xenial main
           Active apt sources in file: /etc/apt/sources.list.d/noobslab-themes-xenial.list
           deb http: //ppa.launchpad.net/noobslab/themes/ubuntu xenial main
           deb-src http: //ppa.launchpad.net/noobslab/themes/ubuntu xenial main
           Active apt sources in file: /etc/apt/sources.list.d/official-package-repositories.list
           deb http: //packages.linuxmint.com serena main upstream import backport
           deb http: //archive.ubuntu.com/ubuntu xenial main restricted universe multiverse
           deb http: //archive.ubuntu.com/ubuntu xenial-updates main restricted universe multiverse
           deb http: //archive.ubuntu.com/ubuntu xenial-backports main restricted universe multiverse
           deb http: //security.ubuntu.com/ubuntu/ xenial-security main restricted universe multiverse
           deb http: //archive.canonical.com/ubuntu/ xenial partner
           Active apt sources in file: /etc/apt/sources.list.d/tista-adapta-xenial.list
           deb http: //ppa.launchpad.net/tista/adapta/ubuntu xenial main
           deb-src http: //ppa.launchpad.net/tista/adapta/ubuntu xenial main
Info: Processes: 182 Uptime: 55 min Memory: 1121.2/2833.9MB
           Init: systemd v: 229 runlevel: 5 default: 2 Gcc sys: 5.4.0
Client: Unknown python2.7 client inxi: 2.2.35