This is a strange issue. There's no reason for FAT32 not to work on the same setup, assuming you copied all the files and didn't wipe the emuNAND partition when you formatted. But if the problem was missing emuNAND, switching back to exFAT wouldn't fix it.
I can suggest starting with a blank SD (can use a different SD if you like), downloading fresh copies of Hekate, Atmosphere and the latest sig patches. And seeing if you can get the "bare minimum" setup running, it'd also rule out the files being bad if it still doesn't work.
I copied my files into my desktop formatted my sd card placed back all the files realized that nothing was working and got the files again placed them back to see if that works and nope there is still a crash for some odd reason is there any problem to what I just said?
Then follow the hacking guide (https://switch.homebrew.guide/) to create a new emuNAND and a new installation of Atmosphère and hekate (if you like) DOWNLOADING NEW RELEASES from his corresponding GitHub repositories
Install sigpatches and try to install and run any NSP.
Then when all works fine. You can restore your backup and try again