The way Disk Utility is showing the internal Hard Drive is messed up. From time to time I see this occur for some unknown reason. Plus you are installing a very early version of macOS there so that could be part of the problem as well. Unfortunately I cannot tell which item is the real physical drive & which is just a volume or container.
If you are trying to perform a clean install by first erasing the drive, then you should instead use the Partition tab instead. See the instructions in the following article:
https://eshop.macsales.com/tech_center/formatting/Mac_Formatting_6-10_R3.pdf
Better yet, try booting into Internet Recovery Mode using Command + Option + R to attempt to access the online macOS 10.13 High Sierra installer. Unfortunately some Macs may only boot to the online installer for the version of macOS which originally shipped with a Mac from the factory. If you can access the online High Sierra installer, then you will want to erase the whole physical drive as GUID partition and MacOS Extended (Journaled). However, the physical drive is hidden by default with later versions of Disk Utility so you will need to click "View" within Disk Utility and select "Show All Devices" before the physical drive appears on the left pane of Disk Utility. You will also likely need to use Fix #3 in the following article:
https://mrmacintosh.com/how-to-fix-the-recovery-server-could-not-be-contacted-error-high-sierra-recovery-is-still-online-but-broken/
I'm not sure which of those two items is actually the physical drive. The physical drive should have a device identifier of "disk0". Typically the physical drive will be the top most item, but I'm not so sure here since the "Hitachi HT....." item is typically the physical drive.
If none of this works, then you would need to write zeroes to the beginning of the drive to destroy the existing partition table. I can provide instructions if you wish.
FYI, like @leroydouglas, I would suspect that original Apple Hard Drive is either worn out or even failing. I can provide a method for checking the health of the Hard Drive which involves creating a bootable Linux USB stick....just let me know.