iPod nano says "0 KB Free" and is not recognized by iTunes
I'm using a 2011 Macbook Pro and I've just recently updated to el capitan. I plugged my 3rd gen iPod nano in yesterday and iTunes wont recognize it at all. I also noticed that the iPod says "0 KB Free" in the settings menu. My computer recognizes it so I've tried erasing the iPod through disc utility but it still says "0 KB Free". I've tried resetting the iPod manually and through the settings menu, running it in disc mode, downloaded a fresh copy of iTunes. Is the hard drive on the iPod shot or is el capitan having an issue with it since it's so old? Thanks for any help!
MacBook Pro (13-inch Early 2011), OS X El Capitan (10.11.3)