NTFS file system error while booting, unable to upgrade from USB

1. My understanding of SeaTools for DOS "Seagate SeaTools is able to scan hdd for bad sectors and even repair them by trying to do recovery or writing zeroes (this method allows ignoring problem sectors during reading/writing of the disk structure)". If there is absolutely no possibility of repairing bad sectors then there is absolutely no need for Seagate to give that repair option when it runs the long test and finds bad sectors. So I would stand firm on the point that the OP should run Seatools for DOS and exercise this option. And yes, if it is a "hard bad sector" even SeaTools running in DOS ( remember it is not running on Windows) will fail to repair and give its verdict not repairable. If it is repairable and repairs it, and OP manages to boot into Windows, he should post haste copy all data into another drive. No need for any data recovery software.

2. While I have to admit that I haven't looked into Kyhi's recovery software, I do presume it is basically a Windows PE. . And talking of Getdataback on it, it is not a freeware. What is included in it may only be a free trial version. While the free trial version, can show you all files and folders, to copy the data you have to buy a license. When all else in data recovery failed, we have recommended to OPs to try GetDataback and Active @ file recovery and to buy it if the trial version is able to show all files and folders. ( I have also seen some "resourceful" OPs taking recourse to pirated key embedded software running on Windows PE )

Yes, Windows "intelligence" on determining bad sectors is different from other operating systems.. That is the reason why we fall back on Linux in data recovery in the case of bad sectors . DOS does not have that Windows "intelligence". If I remember correct - blame it on my poor memory - SeaTools for Windows does not give you an option to repair when the long test fails due to bad sectors.. Since you ran it you should be knowing. So correct me if I am wrong. ( Hmmm...........I have seen another user elsewhere in your condition who took out the HDD, put it in an enclosure, plugged it into a MAC book and he was able to read all data .)

As previously stated, running Seatools is not going to help on a failing or already Failed HDD.
Your best option now is to use GetDataBack from the Boot drive to try and recover any files off of the drive before it dies completely. I would suggest making an Image file with GetDataBack and then scan the image with GDB rather then mess with the failed drive any more, the more you access it the faster it will fail.
This is all going to take a very long time. Once you have scanned, then you will need another drive of the same size or larger to restore your files to. There is a 50/50% chance of recovering any files.
Then replace the failed drive and reinstall Windows, then restore your backup.

The manufacturer Runtime used to differentiate between GDB NTFS and GDB FAT32 with separate programs, then to make it easier they made one program that supports both formats GDB Simple. So, it doesn't matter if GDB NTFS or Simple are used, they achieve the same goal