If you are using Windows 11 24H2 or 25H2, and have applied the October 2025 Patch Tuesday Updates (KB5066835), the WinRE environment will no longer recognize USB devices.
I found that this issue also affects TBWinRE.
I discovered that today after making new boot media for 4.08.
Microsoft issued an out-of band patch KB5070773, which corrects it.