Greetings!
Please try out the following steps and let us know the result.
1. Update Intelligent Provisioning to latest version using Intelligent Provisioning recovery Media 1.71. Please follow the installation instructions.
https://support.hpe.com/hpsc/swd/public/detail?swItemId=MTX_a2b2caf8066e4a8b82a966d628#tab1
2. If issue persists, unplug the USB key and mount the ISO image from iLO and check the result.
3. If issue persists, please try manual installation (Without Intelligent provisioning) and check the result.