It probably would have done the same if you had tried to install Windows or BSD.
You should use a different USB drive and boot something like memtest86+ and let it run through. Or if it's something like a Dell with built-in diagnostics, run that. You need to rule out failure of the different components. I'm guessing it's the drive, but it could also be RAM.
Usually, the Linux installers have memtest86+ built in, as well as media verification. I'd do the verification if you haven't already, then memtest.
Strictly speaking, this is an item interaction, not an attack action. Clearly they're using it as an attack, and framing it as an item interaction to avoid losing invisibility.
I don't know the rules of invisibility off the top of my head, but I might do something like require a stealth check to maintain the benefits, or a perception or dex check from the other guy to notice it/avoid it hitting him. I don't think I'd actually end the entire spell, that has always seemed excessive to me.