When using the ispMACH 4000ZE Pico Development Kit you should select the USB2 cable type in ispVM System. In the ispMACH 4000ZE Pico Development Kit a standard USB cable is provided which has a USB type A connector on one end and a USB 5 pin mini male connector on the other end. This is the cable that is used with the USB2 cable type in ispVM.
The reason for selecting the USB2 cable type is that the ispMACH 4000ZE Pico Development Kit uses the FTDI FT2232D chip programming solution. For more details on this solution please see application note AN8082, USB Programming and Circuit Guide.