USB Flash Drive showing up as LOCAL DISK

The “defect” was with the original implementation.  The RMB bit indicates whether the device supports REMOVABLE MEDIA. Flash drives do NOT have removable media, any more than a USB Hard Disk does.  A USB CD/DVD drive - yes - you can REMOVE THE MEDIA.  Many of us complained about as you say, the DEFECT - that Flash Drives were incorrectly reporting that they had removable media - no they did not.  Removable device - yes.  Flash drives are the same as USB Hard Disks - they do not contain removable media.  SAN did the proper thing and I congratulate MS for pushing manufacturers to have their devices PROPERLY report what they are.  You are right about DEFECT, but you got it backwards.  And there are ways to safely remove any USB device.  USB SAFELY REMOVE for one.  It can safely remove any USB or SATA drive (many SATA drivers don’t allow Hot Unplug contrary to SATA specifications).