I don't understand what you said about another setup and to take the drive out of the box?
It's an external\portable, yes? Am therefore supposing\assuming (no info given) it must be in some kind of cabinet, with USB interface\electronics (and it's own power supply if it's a 3,5).
Am suggesting to take it out of there, and connect it directly in a working pc, or use another enclosure, and perform the tests again. Probably the same error would show up, but maybe worth a try. If it fails again under these circumstances, at least you can be sure it's ready for the trash. And should it go well, get a new enclosure\interface. Whatever you try, good luck.