Quick update: When I restarted it again it took me back to episode one. I didn't feel like replaying the episode at the time so I stopped playing after I got the car battery and was back at the school so I know it was saved. When I restarted again to finish episode 4 for some reason ep 1 started.
To respond to the storage device, you need to select one to access the game so that's not the issue.
And I didn't remove the storage device at any point. I saved it on my main hard drive.
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