There can be two issues:

1. If the ribbon cable was placed backwards on the drive or motherboard you will get this error and ANY floppy disk you place in the drive it will be damaged and can not be formatted. First, please make sure the LED on the floppy drive is not always on. If it is always on, please reverse the cable and find a floppy disk that you can read on another computer. Note: if the drive cable was placed on backwards and you placed a floppy disk in the drive that disc is not longer useable. Check the floppy disc then place in this computer and try again as LONG as the floppy drive does not have the LED on all the time.

2. Second problem we can see is the CMOS is corrupted, remove the input power cable from the power supply and move JBT1 from pins 1-2 to pins 2-3 for five seconds, reconnect the power input cable to the power supply and power on the system. You will get a CMOS checksum error, press F1 to go into the BIOS, load optimal values, save and exit the BIOS, check the drive with a known good floppy disc.