Trying to program ATmega32, getting weird error

Arduino: 1.8.4 (Windows 10), Board: "ATmega32, Standard, 2.7v, Disabled (default), 16 MHz external"

avrdude: Version 6.3, compiled on Jan 17 2017 at 12:00:53
         Copyright (c) 2000-2005 Brian Dean, http://www.bdmicro.com/
         Copyright (c) 2007-2014 Joerg Wunsch

         System wide configuration file is "C:\Users\Lion.O\AppData\Local\Arduino15\packages\MightyCore\hardware\avr\1.0.8/avrdude.conf"

         Using Port                    : usb
         Using Programmer              : arduinoisp
Error while burning bootloader.
avrdude: Error: Could not find USBtiny device (0x2341/0x49)

avrdude done.  Thank you.

This report would have more information with
"Show verbose output during compilation"
option enabled in File -> Preferences.

I am trying to use my Arduino as ISP to burn bootloader on ATMega32 so I could use the serial pin but it's acting weird. I uploaded Arduino ISP sketch first, then put in the '32 chip to burn it. I am getting weird error message, it is complaining about USBTiny but that is not selected in the menu, I selected Arduino as ISP and it does show correctly under "using programmer" yet it's looking for USBTiny for some reason??

I only have USB to serial dongle and Arduino Mega, UNO or Nano as ISP. (Mega requires different wiring because the MISO/MOSI/SCK pins are in different location)

Select "Arduino as ISP (Mighty Core)"

Update: Using ArduinoISP (MightyCore) worked.

But the error message with USBTiny still didn't make sense so there may be a bug somewhere that makes IDE complain about nonexistent device when the wrong programmer is selected?

avrdude: Error: Could not find USBtiny device (0x2341/0x49) is an ArduinoISP. This is an actual programmer just like a Usbasp or a Usbtiny.

You chose the wrong programmer, and got an error correctly reporting that it couldn't find the programmer you don't own and don't have connected.

ArduinoISP and ArduinoAsISP are totally different. ArduinoISP is a discontinued product that should never have been named that, and arguably shouldn't have ever existed