Finally the clue as to what is causing the issue.
On purpose, the save process is designed to offer to place the save on the drive Puppy is on and booting from.
That drive has to always be mounted, because it mounts to boot from it.
Thus the save is always accessible.
Puppy does not auto mount drives.
The only install that is different is a live install to a CD/DVD.
The CD/DVD is usually formatted iso9660 (that is read only) after Puppy is installed to it, Cannot write to it anymore.
So when making a save for a running Puppy on a CD/DVD.
The save has to be placed on a drive that you can write to.
Normally it looks for the computers internal drive as place to put the save. That drive is read/write.
Well, any drive that is type that can read/write.
The boot menu config file entry pmedia= is used by the boot process to identify what type drive booting from.
This affects some of the Puppy processes operations, based on type of drive.
pmedia=cd
pmedia=usbflash (usb flash drive)
pmedia=atahd
pmedia=ataflash (internal flash memory type drive)
Try this:
Change the pmedia= in the boot loader menu config file entry to pmedia=cd.
Boot using this entry.
Do not already be using a save. Need to boot not using a save.
Have the USB drive plugged in and mount it by clicking on it's desktop drive icon.
Shutdown.
When asked about making a save.
Does it now offer the USB as a choice?
Note:
If the save is now on the USB.
Not sure what would happen, finding the save at boot, if more than this one USB drive is plugged in.