Format Time Capsule Hard drive

Formatting the hard disk outside the TC is now somewhat tricky because Apple includes hidden partition for recovery.

Anyway it seems your hard disk is fine.

I removed the Hard drive and it tested fine and I could see the folders like Data.

If you can see and read the Data partition then you have a different problem.

It is simple to test. With the hard disk removed.. power on the TC. The disk does not have to be present for the TC to boot. It you still get solid amber the fault is still there.

When I plug it in it displays a green light and then It displays the Amber light - Always on

Although solid amber is usually caused by a faulty hard disk in the TC.. it can also be a faulty board. This is fairly common on the Gen4. They suffer poor soldering. Mostly the fault leaves the main LED off.. but in your case the TC is partly working.

I would still give it an oven bake. It may not be successful as your fault could be slightly different.. but since you have the TC open.. it is not difficult to go the rest of the way.

See

Gen4 A1409 issues - LaPastenague

You can format it external to the TC, but I don't think that the hard drive is the issue with your TC. Most likely, it is the power supply or circuitry that is failing or has failed.

LaPastenauge has a lot of experience with these types of failures and may chime in with some options for you to try.

Good work.. thanks for the feedback.

There is actually very good success rate for this "FIX"

And once done seems to last very well.. unlike some graphic cards or computer boards.. apple does seem to have more than its fair share of soldering issues.

Great! I'm glad he got back to you and you got it worked out ... he's our forum electronics expert and really knows his way around this stuff, especially getting those things working again.