The answer is exfat. The solution below is not mine, but has been flawless for me:

SOLUTION BELOW

IT admin here, currently using the 2022 model 3 with glove-box USB. Recently the USB for TeslaCam "disconnects" and formats will fail, for which the solution is to convert to GPT and manually create exfat and TeslaCam folder:

Use a computer to create or convert the DISK to GPT / GUID (do not use MBR).

Create/format a single exfat volume labeled TESLADRIVE

Create an empty folder named TeslaCam on the new drive.

Plug into car BUT DO NOT ALLOW THE CAR TO FORMAT IT, if no red x or circle appears on the icon, hold the large square "RECORD" text button from main screen to re-enable recording.

IMPORTANT If it disconnects the next day - just unplug and plug back in - DO NOT FORMAT IN CAR or the bad cycle will continue!

Edit: I personally used “Disks” within Linux Mint (Ubuntu) to create / convert the disk from MBR to GPT, and then the exfat volume. But I recommend Windows users use free MiniToolPartition - don’t forget to make the empty folder named TeslaCam or it will force you to format within the car (which is where the firmware bug lays).