that USB drive will be fine. if you look at MS website the media creation tool needs a minimum of 5GB of space to load trhe windows install on a USB flash drive
taken from
https://www.microsoft.com/en-ca/software-download/windows10
Before you download the tool make sure you have:
An internet connection (internet service provider fees may apply).
Sufficient data storage available on a computer, USB or external drive for the download.
A blank USB flash drive with at least 5 GB of space or blank DVD (and DVD burner) if you want to create media. We recommend using a blank USB or blank DVD, because any content on it will be deleted.
When burning a DVD from an ISO file, if you are told the disc image file is too large you will need to...