Exfat has worked well for the past year on my sxos 2.8 for just about everything never had to reformat or got a corruption just my input but yeah use a splitter if you want to stay on fat32 it is more secure but like I said I’ve done just about everything homebrew to gaming via Xci or nsp, ram edit restore saves and no issues yet
Copy ALL the contents from your MicroSD to your PC.
Format the MicroSD to ExFat
Put all your stuff back into the MicroSD.
To Fix the Issue without ExFat, use NSP Splitter you need to install PyThon 3 and add it as an the Environment Variable, so you can call it from CMD, if not, then you need to open Python 3 Terminal, point to the NSP and execute the command.
You can also use Zadig to install LibUSK driver for your Switch and install the NSP over USB.