You need to do a lot more than that! See:
https://wiki.68kmla.org/Floppy_Drive_Lubrication
Is there a System 6 on the Hard Drive? Just go through the System Folder and remove what password protection extensions/control panels along with any preference files and put them in the trash but do not empty the trash (yet).
Looks like the floppy drive does need help. See if lubricating it helps, and there are three switches in the front of the drive for Disk Insert Sense, Write Protect and SD/HD Sense. Spray some WD-40 into the switches. Then check the bottom of them at the solder side and desolder/resolder those joints as they do go bad over time.
If that does not work, it's time to look at the Bournes Filter. Ask Univserver about that. He tell you how that's done and could sell you what if you if you ask.