im using the wd capsule for the last 2 years on my mac .
today i tried to do backup but the dont recognize the time machine and dont show it.
the led on the capsole is on and i tried to change cable also didnt work.
I'm a bit confuse with your issue. Are you able to provide us more information about the case?
I would like to know the model number of your drive since Western Digital does not have a product called WD Capsule.
Im having the same issue i think, I have a My passport Essential 500GB with modelnumber WDBACY5000ABK-EESN