I have noticed that Windows hangs when it is attached, and I have had timeouts on the driver install. I have reached the stage where it realizes that it is corrupt, and even tells me to restore it using iTunes, but if Windows doesn't recognize it. I have run all sorts of diagnostics on the iPod with no issues. So Windows PnP does not recognize it as a iPod, which is a software issue? So why didn't the recovery work? When I go through Device Manager to update the driver under Portable Devices to install the same driver as the iPhone is using, it tells me that it is not a valid driver for that hardware. Windows currently recognizes the iPod as a USB disk, even when I switch it out of disk mode. Like you, I have followed all the suggestions I can find on the web, including restoring my PC from a month ago and then installing an older version of iTunes with no luck. However, my iPhone 8 is working perfectly. I feel your pain! I have an iPod Classic 160GB that is suffering the same issue on my Windows 10 PC and tablet as of a couple of weeks ago.
Short of a clean Windows 10 install I don't know what else to do.
One of the parents already has an identical model which was "working fine" (although hadn't been synced for over a year). I have a used iPod Classic 5th Generation (A1136) that was purchased for a parent as it is compatible with all their 40-pin gear.