Wish I had good news for you -- but I don't. When the disk diagnostics fail, that means the drive has failed -- but your laptop does not have an actual hard drive; instead, it has an SSD and those rarely fail. Unfortunately, the drive tests can also not work on late model SSDs, leaving you in a bad situation.
Since this is out of warranty, there is little point in trying to contact an HP Service Center to get it examined. If this were mine, I would hunt down a local laptop service facility and see if they can check out the SSD, and if it dead, if they can replace it.
Once you have done that, come back and we will provide information on restoring the PC from HP media.
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