Well....success! I went out and bought a PNY 128g thumb drive. Transferred the files from another drive and I did not have to do a master reset. Took all of 15 minutes. I kept trying the update with old and new drives with no suscess. The only thing different was the PNY 128g 3.0 drive. It was $24.00 at Staples.
I tried the update on my 2106 Edge. I used a new 4 gig, 3.0 usb. When I started the process there was a message at the top on the screen that said, Updating Sync. I ran it for 1 1/2 hours and it never completed the process. I then used a 4 gig, 2.0 usb and the same.
I have learned that just because Ford doesn't list them does not mean they won't work. I called Ford Sync about this and they admitted to testing a small number of phones and that basically any phone with bluetooth should work. They didn't test my phone for the 2016, but did for every model year going back to 2010. It's a crapshoot with them and they said they only test the "most popular" ones.