I've been trying to work around this same problem for a while now. My experience is that if you get a "disk needs to be formatted" error, your disk has problems, usually in spinning at the proper speed. Often trying to read a disk that won't spin up immediately or is slow in spinning up will damage the floppy drive so it won't properly read any disk after that, even known good ones.

Try formatting a disk. If it won't format any disk, the motor portion of the drive is probably damaged.

I installed a USB thumb drive to floppy drive converter in place of the floppy drive in my Korg Triton Rack. They are made by Gotek and are hard to find in the US, though you can order them from China for much less than $100. But I'm still trying to recover some data from my old floppies for my Triton to put them on my thumb drive.

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