Can you confirm, if your system is booted from the USB as you mentioned.
Looks like your system is booted from memory (and hence treated like a stateless host), and hence the operation you are performing (profile update) becomes invalid on a stateless host.
You can execute 'vmkfstools -Ph /bootbank' on the host, if it says "ramdisk" in the output, then your host is not booted from the ramdisk.
Then then debugging should go in the direction, why your host booted from memory (and not from the USB which you mentioned).