This error message leads to this explanation:
"The firmware file is not present in the root folder of the USB storage device, or the firmware file is for another model. Retry from the download of the firmware file. "
Did you unzip/extract this firmware file to the root folder of the USB device?
https://www.pioneerelectronics.com/PUSA/Home/AV-Receivers/Elite+Receivers/VSX-LX301#downloads
Follow the instructions mentioned in the advanced manual :
1.Connect the USB storage device to your PC.
2.Download the firmware file from our company's website to your PC and unzip.
Firmware files are named in the following way:
PIOAVR****_************.zip
Unzip the file on your PC. The number of unzipped files and folders varies depending on the model.
3.Copy all unzipped files and folders to the root folder of the USB storage device.
Make sure to copy the unzipped files.
4.Connect the USB storage device to the USB port of the unit.
If you connect a USB hard disk drive to the USB port of the unit, we recommend that you use its AC adapter to power it.
If the USB storage device has been partitioned, each section will be treated as an independent device.
5.Press on the remote controller.
The Home screen is displayed on the TV screen.
6.Select "System Setup" - "Miscellaneous" - "Firmware Update" - "Update via USB" with the cursors in order, then press ENTER.
If "Firmware Update" is grayed out and cannot be selected, wait for a while until it starts up.
You will not be able to select "Update via USB" if there is nothing to update.
7.Press ENTER with "Update" selected to start update.
During the update, the TV screen may go black depending on the updated program. In that case, check the progress on the display of the unit. The TV screen will remain black until the update is complete and the power is turned on again.
During the update, do not turn off, or disconnect then reconnect the USB storage device.
"Completed!" is displayed when the update is complete.
8.Disconnect the USB storage device from the unit.
9.Press STANDBY/ON on the main unit to switch the unit to standby. The process is completed and your firmware is updated to the latest version.
Do not use on the remote controller.