The single bay My Cloud units do not support EXT3 as a format for external USB hard drives attached to the My Cloud USB port. Use NTFS, HFS+ or FAT32. See the following WD Knowledgebase article for more information. Also see the My Cloud User Manual which also explains the supported USB drive formats.
ext3 works for me… It does not show up as additional capacity on the dashboard, but it is included as a directory in file explorer (in Windows 8.1). And I can read files from that directory and write to them.
Typically one has to enable USB Content Availability for the Dashboard to include the USB drive in the total capacity/total free space shown on the Dashboard Home page. USB Content Availability can be enabled via Dashboard > Settings > General > Cloud Access > USB Content Availability.
When a USB drive is attached to the My Cloud it shows up as a “Share” and can be configured through the My Cloud Dashboard > Share page. The down side is the entire USB drive shows up as a single Share so any Share settings affect the entire USB drive.