In any case, I have read ALL of those referenced threads and there are NO useful answers there. Just Apple people and others pontificating about what they think a solution might be. But NONE of those hypothetical solutions work. Because nobody has actually looked to SOLVE THE PROBLEM.
I any of those linked threads had comments from me, then I have explained the problem, but I will do so again here. If macOS or Disk Utility show a "SMART status: Failed", then it means the drive's internal health monitoring system has signaled to the OS that the SMART health monitoring system built into the drive has determined the drive has reached a failing state. Sometimes these "SMART status: Failed" messages may not always indicate an imminent failure especially when it pertains to an SSD, but if a hard drive has this error status, then the drive is really bad (most hard drives become unusable long before the SMART status ever reaches a Failed state). However, macOS provides no way of customizing the reporting so once the "SMART status: Failed" is triggered, there is nothing the user can do about it except to replace the drive.
Here is a wiki article about the SMART health monitoring built into the majority of hard drives and SSDs:
https://en.wikipedia.org/wiki/S.M.A.R.T.
This article downplays the immediate failure of drives reporting SMART failures, but I can tell you from supporting thousands of computers for our organization for 20+ years, that if a hard drive starts to report certain SMART attribute changes, it usually means the drive should be replaced. Some hard drives may take a while for the failures to accumulate enough to cause major issues, while other times the failures increase very quickly. If I see certain SMART attributes on a hard drive report a negative change, I will replace the drive immediately just so the user is able to have a good experience with their computer since the drive has started to fail. It is like getting a nail in the car tire. Most times your tire will go flat overnight or within a few days while other times you can drive a long time with a nail in the tire without a problem. Same thing with a hard drive with certain SMART attributes reporting a bad change. With SSDs, things are a bit different since not all SMART issues are immediately a concern and requires manually interpreting the SMART health information/attributes and considering the workloads imposed on the SSD.
Apple is a "nanny" company wanting to shield their users from technical details and trying to keep their OS as simple as possible so even those users who know little about computers (or don't want/care to know -- which is fine) can use the Apple products fairly easily. So it is not surprising that when Apple detects a possible hardware issue, it will refuse to perform an action that could potentially render the computer immediately inoperable or cause data corruption (keep in mind an OS upgrade is a major undertaking and can stress a storage device which will reveal a latent already existing issue, but the issue is not noticeable yet with normal use). Plus the first time a new OS is installed, the installer requires updating the system firmware which insists on using only the internal drive to update the system firmware. You don't want to perform a system firmware update with faulty hardware since a botched firmware update can render the device a complete brick. The only way to recover from a botched firmware update is to have a very expensive repair involving the replacement of the Logic Board which with USB-C Macs would definitely cause data loss if the user did not have a good backup.
Basically a "SMART status Failed" most likely indicates a hardware failure or pending hardware failure with the drive. If you want to ignore such notices or have greater control over your device and OS, then you need to find & use another product and OS (non-Apple). Otherwise get the drive replaced if you want to upgrade macOS or remain on the current OS.
You can also provide Apple with product feedback here (Apple will not respond):
Product Feedback - Apple
If you want to communicate directly with Apple support, then use the "Get Support" link at the top right of this page.