If you download it from the Yamaha site and unzip it and put on the root of a USB stick it will but only in USB1 position, however if you make a copy of the playlist you need to copy it once while in Registration mode and then press the Playlist button and copy it again, it will ask if you want to overwrite the files say yes, this copy mode will only take a few seconds but this "second" copy in the Playlist mode is important, if you don't do this the copy of the playlist won't work, as you are experiencing.
Bill