So I am working on a weird USB issue figured I would post it here and update it a I go. I installed (kali-linux-2016.2-i386.iso) on a VM. After install I attached an Edimax usb nano wireless adapter with a rtl8188cus chipset. After I connected it to the VM on an ifconfig. It just hangs. I get an error (rtl_usb: reg 0x4, usbctrl_vendorreq TimeOut! status:0xffffffb9 value=0x4f0f). After searching it appears a few other people have had this issue. Most of what I have found points to the wireless drivers.
Heres the weird part it works just fine in the live environment. I attempted to connect a use drive on it to copy some files and I have found I also cannot see the usb drive. /proc/bus/usb doesn't exist. I guess this is because usbfs isn't enabled. Nother weird part is I have a blue tooth us adapter for my mouse and it works just fine. So not sure whats going on here. Again in the live environment everything works perfect. Not sure where to go with it but, ill update this thread. If anyone has any ideas ill check back later.