First, just keep in mind I am just some dude sitting at home drinking coffee and typing from experience. I do not work for WD nor have the tools and resources they do.
First I don’t think you purchased a compatible drive. It does not show in the list on my box. Not only do the letters have to match but the actual firmware (numbers) Just because it is a WD Black drive does not mean it will work. And it is very hard to find a good description of plain hard drives on the net, so your best bet is to purchase the purchase a propper drive kit.
I am pretty sure you do not have to power off to change these drives, but that should not really matter. The searching sounds like it is looking for the desktop where you are running the recovery from.
Bad Storage is not good. You will lose everything if you do the recovery step called “Recreate Storage” If it was me I would remove the new drive and see if it will power on/boot up as it was before. Backup my data to USB drives and then plug a proper drive in. Now the drive you bought may work, but if it was not a WD kit I have my doubts. You need to contact WD to be sure.
