How do I install MacOS Sierra DMG to Bootable USB?
Solution 1:
Here's what you need to do, you have two options:
Use Internet Recovery to install Yosemite, like you were doing earlier, and then either upgrade to macOS Sierra via the App Store or just download the macOS Sierra upgrade to create a macOS Sierra USB Installer from.
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To create a macOS Sierra USB Installer you need a working Mac so you can download macOS Sierra from the App Store and with a blank USB stick run this command via Terminal. Make sure you first reformat the USB stick using Disk Utility to Mac OS X Extended (Journaled). Also rename the USB stick to: Untitled
Use the following command:
sudo /Applications/Install\ macOS\ Sierra.app/Contents/Resources/createinstallmedia --volume /Volumes/Untitled --applicationpath /Applications/Install\ macOS\ Sierra.app --nointeraction
Then perform a clean install using the macOS Sierra USB Installer.
Solution 2:
If you have "Install macOS Sierra.dmg", Install it and you will get the app "Install mac OS Sierra.app" installed on your applications folder.
So to be clear, installing "Install macOS Sierra.dmg" will not install Sierra OS on the current computer but only puts the "Install macOS Sierra" app inside the applications folder.
This way you get the app. And you create the bootable USB by running the command given by Maximus.
Hope this help!