I got it working. I downgraded the ESX USB driver to the previous version, but not sure that was the problem. I believe the series of USB sticks I was testing with were the issue. I attached a few USB hard drives that I had available and those worked.
I recently installed XPenology on ESXi 6.5 using the Jun loader. I am unable to access USB devices on the XPenology virtual machine. I can see the devices in ESX and can assign them to the XPenology virtual machine, but they do not show up as External devices. Is there any tip to this or anything that I may be missing other? The behavior is the same for both the USB 2.0 and 3.0 virtual controllers. Thanks for the help