Greetings!
Thank you for the update.
There are no logs to check what exactly happens during the installation.
OS would be installed on the logical drive that you select during the installation. The RAID-1 OS configuration activity lights are off because there may be no activity/OS installation happening.
Please following the below steps in sequence and let us know the result.
1. Remove the USB thumb drive, mount the OS ISO image from iLO and try installing the OS. If iLO is not configured, you can configure iLo by following "Setting up iLO" on the weblink below.
https://support.hpe.com/hpesc/public/docDisplay?docId=c03334051
2. Please try installing the OS directly from the OS media (without Intelligent provisioning).
3. If issue persists, please use a different copy of ISO and re-attempt steps 1 and 2