In order to use the transfer feature, you need to insert a CD/DVD disc in the disc drive or an USB flash drive in the USB port of your PC. If the disc is not recognized, press Windows + Pause/Break key combination and open Device Manager. Expand the Disc drives list, right-click on the driver and select Uninstall. Reboot your computer, press Scan for hardware changes icon from Device Manager and wait for Windows to retrieve the drivers. If it doesn't help, run the Fix It utility provided by Microsoft. It is developed to identify and repair CD or DVD drive issues, when you cannot burn or play CD or DVD discs.
If the USB device is not recognized, open Device Manager, expand the Universal Serial Bus controllers list, right-click on the driver and select Uninstall. After that, reboot your PC, connect the device and press Scan for hardware changes option from Device Manager. If you still have issues, try reinstalling the software.