Sounds like the file you're trying to copy is corrupted, and or protected and windows copies it until it hit the portion that it can't read.
FAT can't handle 4 GB+ files, it is a very old File System
That the drive on his laptop is formatted to FAT32 is a non-issue. While it is true that you can have larger hard drive sectors using NTFS, FAT32 will just use a larger number of sectors to store large files. While that will cause it to take longer to read and write very large files, it will not prevent copying or moving of files. But if a file is corrupted windows can lock up while trying to read the file. Also some copy protection implants data that windows cannot read, when using the file this data is normally ignored, but when copying a file windows tries to duplicate everything and since it cannot read said data, one of two things usually happens.
Depending on the type of data used, either a read error is generated, or in some cases windows locks up, trying to read data designed to be unreadable to windows.
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