Windows has looked at the volume, failed to make sense of the structure describing it, and offered the only thing it knows how to do — write a fresh one. Your files are almost certainly still there. What has failed is a few kilobytes describing where they live.
“Access is denied” is a permissions problem. “The parameter is incorrect” is file-system damage. “Not formatted” is a missing partition structure. Three different faults, and none of them is asking to be formatted.
This message appears when Windows finds a disk it recognises as hardware but cannot make sense of as a file system. That happens for several reasons and almost none of them means your data has gone.
The offer to format is Windows being helpful in the least helpful way available. Accepting it writes a new, empty file system over the structures describing where your files are — which is the one action that converts a recoverable situation into a considerably worse one.
Click cancel. Then work out which of the four common causes applies.
File system damage. The boot sector or master file table has been corrupted, frequently by an unsafe removal or a power loss during a write. The files are intact underneath.
An encrypted drive out of its enclosure. WD My Passport and My Book encrypt at the bridge board. A bare drive from one of those cases will always show this message. Put it back in its case.
A bridge board fault. On externals, the board translating the disk to USB has failed and is returning nonsense. The disk behind it is frequently perfect.
Physical degradation. The drive cannot reliably read the region holding its file system. If it is also slow or noisy, this is the likely cause and it is urgent.
Not necessarily. A quick format writes a new file system and leaves the data physically in place. Stop using the drive immediately and much is usually recoverable.
Common. An interrupted write leaves the file system inconsistent. The files themselves are generally untouched.
Then treat it as urgent and switch it off. A noisy drive showing this message is degrading physically, not just logically.
From £300 +VAT for a drive, £250 +VAT for cards and USB media, fixed after the free diagnostic.