The "Make Startup Disk" ubuntu utility sees it as writable only if it's fat formatted. If I format it to Ext4, it sees it as 0 free space and doesn't allow to click "Make startup disk" button.
However, since I plan to use the drive to run the OS (not just install) and will store files bigger than 4gb i would like to have bootable usb drive on ext4 Would that be possible?