The HD activity light would flash rapidly then go steady.
This could mean a lot of things.
On a normal startup, the Widget's activity light will blink a little bit and you will hear a squeak-squeak-SQUEAK-squeek as the Widget recalibrates the heads. What should happen next is the Widget starts its surface scan, where it blinks steadily for minute or two (unless it finds a defect). At that point the light should go on solid; the disk is ready for use.
Can you go into more detail?
a momentary pfs:file & pfs:report flash screen before the desktop appears.
I'm not sure what these things are?
Now it won’t even boot at all, just going into an infinite state.
What is the drive doing, from power-up, in detail?
Does this sound like a corrupted hard drive? I did find a nVIRA virus on the Emu. Or would replacing one or more Widget boards more likely fix it?
The virus is irrelevant: it sounds like your drive is not completing its startup sequence (described above), which is something that's baked into firmware. We don't know where the problem is yet, so while replacing circuit boards may help, it also may not do anything useful. It's a bit like a car that won't start: you may fix it if you randomly replace enough components, but you could spend a lot of time and money replacing irrelevant things. With the car, it's better to troubleshoot the fault and replace only the part that needs replacing. This is probably the best strategy for the Widget too, but it's seldom easy.
I would like to reformat the drive and install LOS, and the BLU sounds like the answer.
If you wish to reformat your drive, I would keep several tools in the toolbox. BLU is one of them;
NeoWidEx (which I wrote) is another. As they are separate implementations, you may find that one produces different results than the other.
Unfortunately, I doubt that either will work in your case. It sounds like your Widget is giving up on working before it is in a state where it will obey commands from programs running on a Lisa. This is why you encounter infinite

: the Lisa is trying to talk to the Widget but nobody is listening.
Too bad its not included on the Emu Lisa stuff. I don’t look forward to
“type a bunch of hex numbers in for the BLU loader” or running terminal software that supports x-modem transfers
You have a Floppy Emu, so you can simply copy a BLU or NeoWidEx .dc42 disk image onto your Floppy Emu and boot it. The hex numbers are for when you don't have these programs on a floppy disk (or on a disk image if you are using a floppy drive emulator).
As for the x-modem transfers: this remains by far the best way to create images of data on a Widget, unless you own
one of these.
Can the Apple Service mode reformat it?
I don't know the answer to this, but I expect that it won't be able to do a lower-level format in the same way that BLU or NeoWidEx do it.
As a final note:
@mactjaap is correct to point out that Widgets are unreliable. They are nice to get running, but 40 years after their manufacture, they are no longer suitable as everyday-use hard drives for the Lisa. You will probably want to obtain a hard drive emulator instead.