- As some of the USB drives have their own security system software installed, I wish to know are these softwares actually trustworthy to be kept in it (like to add a password to password-protect it to secure our USB drive and/or even external hard drive)?
2. Use tested open source solutions such VeraCrypt or LUKS.
Personally, I'd zero-out (wipe) any USB you plan to use to store private keys or seeds on. Then reformat the USB on an offline laptop, ideally using a linux live system.
Luks might be more convenient but veracrypt is much more secure (when set to Serpent-Twofish-AES - 256x3). The Luks default is AES-256 if I'm not mistaken.
I'd also recommend creating both a veracrypt file as well as a partition on seperate disks. The files are more reliable, as well as to replicate, the partitions are less reliable.
The veracrypt partition option is useful for creating full disk encryption, such as with tiny useless USBs, that are more resistant than luks default encrypted partitions.
Finally I'd recommend never making just 1 backup (this is a single point of failure still), make multiple on cheap USBs for a distributed backup system instead.