Again, a reformat will not repair/move bad clusters. Chkdisk or some other equivalent would need to be used.
If you format and re-install you will have the same situation with no errors being corrected.
If you can free up enough space on that drive to allow chkdisk to run properly than it should be fine.
The other option is if you are considering formatting then you could run chkdisk on the empty drive and let it fix things and then do a clean install of all your stuff.
How old is this drive ? ?
It might not have much time left.