getting disk3s1 0x3e8 (UNDEFINED)

I'm doing a hackintosh on my Optiplex 780 SFF using this guide:

http://www.insanelymac.com/forum/topic/321867-step-by-step-sierra-on-dell-optiplex-780-small-form-factor-with-clover/

I previously installed macOS on this system but formatted the disk due to errors I made.

Now I'm doing the same procedure using the VM to create Bootable USB since I have no option to create usb on a real mac. I'm getting the error Disk3s1 0x3e8, it runs in a continuous loop.

what is wrong here and any suggestions?

screenshots of the error