When formatting a flash drive, 'Insufficient space for local storage directory' message appears in system tray formatting process fails with "Insufficient resources exist to complete the requested service" error.
Basically, formatting is the process of writing a file system on a removable flash drive. The error and the message hence indicate that the shadowing functionality of DeviceLock got activated to generate a shadow copy of the file system while the flash drive is being formatted. However, there is not enough free space for the shadowed data on local computer. For example, given that ‘Local Storage Quota’ parameter is set to 50%, and the free disk space is 10Gb, DeviceLock can use only 5 Gb of space to store shadow data, which might not be enough to successfully complete the operation.
1. Provide enough free space for shadow data in order to successfully complete the shadowing operation. In this case, at least 3 times more space, than that occupied by the data being copied, must be assigned in ‘Local Storage Quota’ parameter
2. Disable shadowing for the formatting operation by clicking "Deny" Format flag for Removable device type in "Auditing, Shadowing & Alerts" as displayed on the image below.