The problem is that this USB device was encrypted by EEPC at some point, perhaps by someone else? It has an encrypted keyblock marker on it.
You need to use a sector editor or something (like WinTech) to zero out the first 64 sectors of the storage to remove the marker. Then format the key again on a machine without EEPC installed to clear it.
Thanks for Replay.
Can you please tell what option is used to zero out first 64 sector using Wintech?