iPod displays a folder icon or ‘Use iTunes to Restore’

Problem:

When you attempt to start your iPod, you are greeted with either a folder icon or a message that says “Use iTunes to Restore” in multiple languages.

iPod Classic (1st, 2nd and 3rd generation)

iPod Classic (4th generation), iPod mini)

iPod Classic (5th Generation)

iPod Classic (6th, 7th Generation)

iPod nano

iPod nano (2nd gen)

The main reason behind this screen is due to the iPod boot loader being unable to find the system files on the internal storage, or the hard disk may be corrupted.

Solution:

Connect your iPod to your computer. The iPod screen should switch to the following with the prohibitory sign flashing:

Recovery Mode

At this point you can use either the iPod Updater, iTunes or the Finder (macOS 10.15+) to restore your iPod. If the problem still persists you may have to replace the internal storage of the iPod.