I used DiskPart to partition usb and it worked. I have no idea why it didnt work before with other partitioning tools. Thank you so much!
I think its good idea to include DiskPart USB partitioning in installation wiki.
IDK why other partitioning tool was messing with the boot. I had 1 partition when I partitioned with other tool as well
Thanks a lot! Everything works. openwrt 23.05.2 runs great.
I will definitely save this USB stick for recovery. I am sure I will eventually brick the modem