Which SD card you have?
Do you have another one at hand to try?
I’m not sure why you’d get a hang at formatting on a USB installation, as no partitioning of the SD is needed for this scenario, and it’s unlikely that both USB and SD are problematic.
However, if the Format succeeds, but then there is some problem beginning the extraction, then you may only see the Formatting Device message.
I would try another card.