the update method changes based on your current version.
you probably followed an old guide, which either gave you an old version, or don't tell you proper way to update.
the project was hosted on googlecode, but google closed their service, so if you have 3.0 you can't update from the "update menu" inside the loader.
the files are now hosted on sourceforge, so if you have google's old version of the loader you'll have to update manually.
Manual update will always work.
Another problem you can have is the channel you installed.
there are two kind of channels : full or forwarder.
The full channel, which contains the USBLoader's program, is old and not updated anymore. you will have to delete it completely. You can verify by launching the loader from your channel, then go to settings > credit. if it says "3.0c" (with the C letter), then you are concerned about this. you need to delete it !
The forwarder channel doesn't contain the USBLoaderGX progam, but only a small program used to "forward" to the real USBLoaderGX's program located on your SD card. This is what you should use.
this way, it's easy to update : just update the file on SD card ! no need to replace/reinstall/update the channel anymore.
you can follow my small guide here :
https://gbatemp.net/posts/6478222
it will let you replace the full channel with the forwarder channel.
it will let you update manually to the latest stable release.
Once you have the latest stable release, you will be able to update the loader by going into "settings > update" menu.
note that not all versions are seen by this menu. so don't worry if you see a new version on sourceforge but the loader tells you there's nothing to update.
when i use USBloaderGX with my class 10 Psonsoi 125GB micro SD in a micro SD to usb Adapter
Flash are not very compatible from USB.
use SD card only in SD card slot.
use HDD only in USB slot.
using Flash type device in USB will either freeze, crash or create issues (up to file corruption and losing data).