I have been having quite the trouble installing Android-x86 on my USB but it works perfectly fine as a live operating system. So instead I wanted to see if I can create persistent storage in order to retain my changes. It seems possible seeing as I managed to see 2 older articles about it.

I created a 1 GB 'data.img' file, formatted it to ext4 and placed it inside the USB drive. I booted Android-x86 but it only remained at the splash screen. I tried this with 2 different USB's also, same result. Removing the .img file made the live operating system appear again.

Is there a proper way to get this to work? I'm using android-x86_64-7.1-rc1.

I'm not a phone person myself

but it sounds like you created a .img file from the phone (to save it), you altered a .img file and uploading it to the phone (containing the save info plus the original images, in the .img file), but when you uploaded the altered .img file the phone didn't like it.

your phone has a USB connector so I'm unsure why your bothering to do that if you could just attach a usb storage to the phone (the phone, given the right software, can be controlled by USB realtime, or with drivers use the USB for storage)

I suggest 2 things:

#1. remember the cloud and not to ignore it's usefulness in persistence

#2. look for a marketed product that attaches to a cell phone to store photos. investigate if it works as persistent storage.

#3. re-investigate your methods. almost surely there are rules for the .img file you haven't followed that the original image does follow. create your .img correctly and it will work. this is the case with any .img whether for cell or of CDROM or what.

I'm trying to make a persistent Android USB too, installing it from a live to USB to (what is supposed to be) the persistent one, but nothing boots.

I didn't thought to create a data.img file, and I'm interested in how to create a persisten USB too.

Android-x86 is a sort of linux distro.
if what op wanted is possible at all, i think one should ask them (Android-x86 developers and community) how the magic works.