Is this the same behavior your had originally? Your first post had a photo of a failure dialog, rather than a bomb.

Where does the format fail? Is it still happening immediately, like on the first track, or does it happen at the start of the verify step?

If you haven't already, might as well check all the other lines from the SWIM to the drives - there are only 10 or so of them, as I recall.

Have you tried both 800K and 1.4M floppies? That might provide more clues.

Good luck!