You can format the first recovery disk using the
"diskpart" tool however the C and D will not allow wiping because C is your boot drive and D is the system... today you would expect to see an efi system partition at the front to avoid this type of lock but I assume D (
XP) was the first drive sometime in the past?
3 work-arounds;
1. Use a solid image tool like Acronis to make a bootable backup of the C drive then insert a new blank hdd and get Acronis to transfer just the C drive onto it... this will make the new C drive also be your system disk.
OR
2. Format/ wipe the hdd and start again with a new fresh copy of Windows
or
3. Insert a new blank hdd, temp remove the old one so only this new blank one is in the system and install a fresh Windows onto it... this is the best/ safest option if you want to go over to wx... in that senario, it's what I recommend you do.
P.s I see you have the WX tool installed on that system... I expect the upgrade will fail because of this non-standard set up will block the default backup and recovery part of the auto-install and advise you to make whatever backups before trying it.