Hi,
Hope you are following the procedure in the below URL
https://support.hpe.com/hpsc/doc/public/display?docId=mmr_kc-0122193
There is another option to factory reset the controller.
The MSM760 can be reset to factory defaults by using a serial cable connected to the console port and monitoring the startup of the unit after a power restart. 1. Power off the controller. 2. Connect a serial cable to the controller console port. 3. Configure a communications terminal program (such as Microsoft Hyperterminal for Windows, or Minicom for Linux) as follows: • Terminal: VT-100 (ANSI) • Speed: 9600 bps • For the MSM760, set speed to 9600 bps. • Data bits: 8 • Stop bits: 1 • Parity: none • Flow control: none 4. Open an appropriately-configured terminal session. 5. Power on the controller. System boot messages appear. 6. Do not press any keyboard keys. Wait for the LILO prompt to appear. It looks like this: LILO 22.1 boot:IMPORTANT: As soon as the LILO prompt appears, tap the keyboard space bar to prevent the automatic (non-factory-default) boot from continuing. You must tap the space bar or other key within four seconds of the prompt appearing. 7. At the LILO prompt, type the command linux factory and press “Enter”. The unit is reset to factory defaults and will boot up normally.