There might be chances that your drive is in HFS+ format, that’s why it is unable to transfer data to a time machine backup drive and showing issue like "there is not enough space on time machine backup" and may also ask you to erase or reformat the drive.
Further, here are few DIY fixes to resolve the time machine backup failure issues:
1. Check external hard drive’s file system.
2. Check free disk space on external hard drive.
3. Check for junk files or other unwanted data as it might be causing problem.
4. Check if the Mac software is updated.
5. Try restarting your Mac.
6. Check if the mac and the backup drive connected to the same network.
By checking the above issues, you might resolve the time machine backup failure.
Hope it helps!