What can I do to take care of this issue

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What is the exact error message you are seeing that says the phone is bad?

See if anything here helps. 

Disk space - How to check the storage on your iPhone, iPad, and iPod touch.    *

 Disk Space – Free Up    -

 Disk Space – Free Up (2).  -

 Disk Space – Free Up (3).  -

 Disk Space - Free Up (4)    -    

 Disk Space - Free Up (5)   -  

ASC YouTube for how to free up space on your iPhone, iPad, or iPod touch