I know you have since started booting from SSD and the issue is no longer present... but If you want to experiment with this issue -the cause of your "Bootbank cannot be found at path /bootbank" and extreme latency/hanging is likely due to an APD to your USB boot media which in turn could either be due to a hardware/firmware issue OR due to media corruption. As you already identified, 100% this is because your boot media is USB. Your assumption that "after booting from a flash drive, I don't think ESXi uses it at all" is no longer correct by default for vSphere 7, which uses a modified boot partition layout - and unless you manually redirect coredump and scratch to a high-endurance storage device, you are effectively overwhelming the I/O capabilities of your boot device by streaming your system logs to it during normal operations - this sustained high data rate will eventually corrupt the boot media. In ESXi 7, the small & large core-dump, locker, and scratch are now located on a new "ESX-OSData" partition on your boot device (provided it is large enough) which is formatted as VMFS-L. Booting from a non-high endurance device like USB, SD card, etc. is still a supported method of running ESXi, but you MUST create a core dump file on a datastore backed by high-endurance media, and also assign scratch to a directory on a datastore backed by high-endurance media such as local HDD or SSD, shared storage datastore, etc. I would encourage you to read Niels Hagoort's excellent blog posts on the subject here:
https://blogs.vmware.com/vsphere/2020/05/vsphere-7-esxi-system-storage-changes.html
and
https://blogs.vmware.com/vsphere/2020/07/vsphere-7-system-storage-when-upgrading.html
and also read the following KB article which describes the risk of boot media corruption:
https://kb.vmware.com/s/article/83376
Sadly, I feel this is a ticking time bomb for many who upgrade to vSpere7 without knowledge the boot device formatting changes. The recommended boot device is now an HDD or SSD. Too bad for me and a lot of vSphere admins who spent considerable time building diskless host environments over the last 5 years and getting rid of all our spinning rust.