Hello Joe, I am Henry and I want to share my insight about your sharing.
I've reviewed the details and see your screenshots and workflow demonstrate that the Server Manager GUI seems to overlook the rule regarding unallocated disks.
According to Microsoft’s documentation on deploying Storage Spaces via command line (Step 3 – Configure Storage Spaces Direct), it's essential to ensure that the disk contains no existing partitions or data prior to configuration. This requirement helps avoid conflicts during deployment.
https://learn.microsoft.com/en-us/windows-server/storage/storage-spaces/deploy-storage-spaces-direct#step-3-configure-storage-spaces-direct,
Regarding the Blue Screen of Death (BSOD), I suspect it's caused by the
spaceport.sys driver. This could lead to a predictable SYSTEM_SERVICE_EXCEPTION crash—especially if the system attempts to hand over control of a disk that’s already in use. Based on your description, this does seem like the correct error associated with the bug you've encountered.