Those are Dashlaunch' settings (not Aurora's). What happens when you launch Aurora? You get a black screen every time? (nvm, i read your reply below)
Btw, you can make Dashlaunch auto boot to Aurora when powering on the console, but if it's not working right now for some reason best leave it aside for now until you get it to work.
Copy Xexmenu to your usb, and launch it from Xbox' dash games section. Using another Dash like FSD2 or 3 is also an option. You can launch either from Xexmenu or by making one of them auto boot in Dashlaunch. It's in "path" / "default" iirc.
This simply doesn't make sense why this is happening for you. Make sure the usb is formatted as Fat32 32kb cluster size, only 1 partition if possible, not saying that's def the cause of this but could be.
Anyway, either re-DL the latest Aurora copy it to the usb and test again, or try with other dashes (mentioned earlier).
If you're editing the "launch.ini" file, don't, that's for Dashlaunch and not Aurora.
Unless you want to brick your console? Updating directly will 100% result in a brick. Xbox Live might be blocked in Dashlaunch to prevent that from happening or it might not be. Regardless it's unrelated to your issue.
Though you could update the fw if you're not on the latest (17559), but there's a process you must follow if you're so inclined. Also another incentive of updating is that XBLIG won't play without the Avatar update (if it's not installed). One way to know if you have it is the avatars will look gray if you don't.