It's obviously an HDD compatibility issue. You even mentioned it a couple posts back.
Kinda give up now and accept its a hdd compatibilty issue with the dios mios app.
You're capable of getting Wii ISO's to work on the drive. You're also getting the GC ISO's to work on the drive as long as you're using Devolution. AND, you also got them working when using DML. So there's obviously no problem with the games themselves. -- Dios Mios is just fickle with certain drives. Continuing to trouble shoot your current drive is an exercise in futility.
I know it's not cheap to just go out and buy a new drive. And it's definitely going to feel unnecessary especially when your current drive is working just fine with everything else. But you're gonna be better off trying to trouble shoot with a different drive then taking up anymore time trying to get this one to work. Maybe you know someone who has one you can borrow. Trying a different drive will help you to pin point, with some certainty, IF IT IS your drive, or if it's a completely different issue that's being overlooked.
It doesn't even need to be a harddrive. It could be a flash drive.
Also, the USB port that you're plugged into makes a difference. Well, at least it used to make a difference. I think it still matters on my Wii, but it could just be a setting that I never changed. Anyways, I remember when I first started with softmods (years ago) that it was important to plug your drive into USB Port 0, which is the bottom usb port if your Wii is sitting flat in it's horizontal position.