How to copy Time Machine to a new drive?

I am migrating from an older Mac to a newer Mac. Recently, due to a blackout, the 8TB Time Machine drive for the older one became irreparable by Disk Utility (data corruption of the extents, not physical damage). The files are still there and usable, but it gets mounted as read only. There are 4.25TB used on the drive

Essentially simultaneously, the old machine is acting up, so I don’t want to mess with it until I can spend more time diagnosing it. The old drive is now connected to the new machine for all further discussion.

I also have an 8TB drive intended as a Time Machine on the new Mac, altho so far it is empty. I figured I could copy the files over there, reformat the old dive to fix the corrupted extents, and copy it back. Nothing I’m doing is working. I tried to rsync, but it spends hours without any apparent progress or error messages (Terminal has full disk access…). I tried a Finder copy, but it spendins hours just collecting info on files to copy. I tried making an image of the old drive onto the new drive (in Disk Utility), but no matter the image options, it wants the full 8TB of free space, and of course the new drive has some taken up by overhead already.

Any suggestions, short of a bigger drive?