When I go to Gparted and try to format my pendrive to exfat,the option is greyed out and I am not able to select it however I can choose other file systems such as ext4,ntfs,etc. Why is that ?
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Gparted doesn't support creation of exfat file systems. You can use
mkfs.exfat utility from the terminal like:
sudo mkfs.exfat -n LABEL /dev/sdXn
LABEL with the label that you want for your USB and
/dev/sdXn with the partition id of your USB.
You will have to install
exfat-fuse from the universe repository for the above to work;
sudo apt-get install exfat-utils exfat-fuse
This is the default pre-installed disk manager tool on Ubuntu that shows on the Dash as "Disks". You can launch if from the terminal with:
As of Ubuntu 18.04:
The GUI was a bit different in older versions: GUI tool for formating to exFAT