Did not see a similar issue while searching the forms.
Out of nowhere the internal storage on my Xbox 360 shows up as unformated. Well, I assume that everything on there is lost and attempt to format. However, it does not appear to format. The format screen comes up and then it returns to the listing of the storage devices with the internal storage showing unformated again. There is no error or abort message. Is this a permanent hardware failure? The console seems to operate normally and I retained any saved data stored on an external flash drive. How will any updates be handled without internal storage? Should I be shopping for a hard drive, which will probably cost less then a repair?