usb ports suddenly not working on m1 iMac for certain devices

Suddenly I noticed that my WD Ultra Passport 5tb external drive (used for Time Machine backups wasn't working). I then began to notice that my keyboard wasn't working and programs were very sluggish to open, something that never happens on this iMac. I ran Apple Diagnostics - no issues. I tried all the ports - no luck. I tried different cables - no luck. I rebooted - no luck. As soon as I unplug the external drive, my keyboard starts working and the computer is back to working normally. So I then tried plugging in an external CD drive - not recognized. So then I plugged in a USB flash drive - instantly recognized. I thought originally the WD drive had failed but I think something else is amiss. I tried opening Disk Utility - won't see the drive - in fact no drives will show up in Disk Utility when the WD drive is attached. If I unattach it, then my main drive shows up.

Any thoughts on what I should do?