I have seen that error message on external drives when they are starting to (physically) fail. Remember that Disk Utility is checking the file system on the drive, which may be ok, but the drive could be starting to physically fail. The physical condition can be checked with DriveDX, which can be used in a free mode for a short time. I ended up purchasing it because I found it so useful. It can examine the physical condition of both internal and external drives, provide you with information on physical errors, lifetime left on a drive, and temperature (running hot is another symptom of a failing drive), plus details on all the SMART parameters.
When I saw that error on an external drive, I have never been able to rescue such a drive or repair it.
Can you still both read and write to the drive?
In any case, I would treat this as an unreliable drive unless you can run the long extended tests in DriveDX (not just the short test) and only if it get good scores on all the physical drive parameters.
By the way, Catalina can work well with both HFS+ and APFS external drives used for storage.