Hi,
Your old 32 MB recovery drive worked before because the recovery image was much smaller. Today, Windows recovery tools require far more space usually 8 GB or more due to added system files and updates. Even if the drive says “32 MB,” its usable space 27.9 MB is nowhere near enough for the current recovery image.
What is suggest is: Use a larger USB drive at least 16 GB for Windows 10/11 and recreate the recovery media. Reformatting the old drive won’t help because the size requirement has changed.
Happy to help!