The laptop(lenovo legion Y520) has been 4 and half years old. No issue until last month.you have at best a bad sector on the hard drive and at worst a drive that is about to fail.
from a command prompt you could run chkdsk c: /r and have it hopefully find the bad sectors, try to recover the files located on them and then lock those sectors away.
after that I would then run sfc /scannow to check for system file corruption.
you should also check the SMART values for that drive. a couple of programs to help are Speccy or CrystalDiskInfo.
but once I lose faith in a storage medium, it's time for a new one!
I assume you have all your personal files safely backed up to an external device.
Can it also be due to declining CMOS/Rtc battery as laptop has been 4 and half years old?
Yeah,that's great news! - and possibly some important info you could have stated right off the bat!
so your C:\ is already a SSD and sounds like it's fine.
your drive with the bad cluster is a secondary internal HDD which is now reformatted and reporting no errors.
I would still be cautious of what is kept on the HDD, if it got bad clusters once, it can happen again, anytime. make sure you keep up to date with your backup process.
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