Good question here --- I've had to try and rekindle some of my Widget memory, and I don't think I'm all the way there. If we're lucky, Dr. Schaefer will chime in with real knowledge.
So formatting from cylinder $221 is normal behaviour for NeoWidEx. I think the reason for this is because there are two ways of "recalibrating", or resetting the head servo and getting the Widget's heads close to a known location over the platter. There's an ordinary one called a "recal" or "data recal", which places the heads near the innermost data track, then there's the "format recal" which places the heads "about 36 tracks closer to the inside diameter of the disk", a place where "the disk surface in this area is not likely correctly [sic] store information written there". You can see this text on page 98 here:
http://bitsavers.trailing-edge.com/pdf/apple/disk/widget/Widget_ERS.pdfWhen formatting, NeoWidEx follows a script that Dr. Schaefer observed whilst watching an Apple /// format a ProFile. You can skim the comments in the source code here:
https://github.com/stepleton/NeoWidEx/blob/main/NeoWidEx_UTIL_Format.X68#L128where the comments at the top of each "block" of opcodes say what's going on. Anyway, the format starts formatting tracks from the position it reaches after a "format recal".
I'm not sure what the story is with the failure you're observing, and it may take some back-and-forth to sort it out. Perhaps a good turn-it-off-and-on-again first question to ask is: what ROM revision is your Widget? In other words, when you do DRIVE INFO, what's the number after "REV-"? The
UsbWidEx documentation recommends formatting with the latest firmware revision, 1A45. I'm not sure if that's relevant here, but it would be interesting if you were using a different version.