Chkdsk error 0xc0000185, not enough space on disk?

Hey there, I've been having some issues with this file on my computer, and I was curious if it was possible to recover.

A couple of days ago, I thought I'd go and clear up some files on my computer to free up some space. I have a new 1TB Hard Drive that I could move some of my bigger files to, so I've been working on moving files I didn't need on my main hard drive. However, while in the process of moving one of my monstrous files, I noticed that 7-zip started to hang. After it would hang, my computer would slowly stop responding for a few minutes, until it'd throw an I/O read error and stop reading the rest of the file. At first, I thought it might've been the new hard drive that was causing this error, so I tried to move the file from one location to another on the same hard drive when I realized... the error happened before 7-Zip actually attempted to copy the files to the new hard drive.

So, why the continued mention of 7-zip? The file in question is a zip file. I created it about a year or so ago as a backup of some of my personal files on an older hard drive (that actually got replaced with my current new one, if that makes sense). It's about 40 GB in size compressed, and holds about 70-80 GB of information. Fortunately, 88% of it is actually accessible, and I was able to move most of the files. However, a total of 107 different files gave me errors either for I/O (0x8007045D) or bad compression (which is probably a result of I/O).

When I finally figured out it was a problem on the actual hard drive, I ran chkdsk a few times to see if any of it could be recovered. Most of it comes out okay, at least until I look at step 4, where it gives me a disk read error (0xc0000185) and tells me that "The disk does not have enough space to replace bad clusters." I've moved some other large files from my current hard drive to my new one in hopes that I would be able to get past this error. I figure it's a fair error, since it is a 40GB file with several random places where data can't be read.

Previously, I had about 38 GB of space free, and now I have 301 GB. Unfortunately, clearing that space did not do anything about the error.

So, for my overall question: is there a certain percentage of space I need to have in order to recover a 40GB file, or is chkdsk just not made to recover data like that?

I'm afraid that chkdsk is not the best tool for recovering data. I'd rather use something like this: Free Data Recovery Software Download to Recover Deleted Files - EaseUS Data Recovery Wizard Free Edition

Free space is needed for chkdsk to write files recovered to a different place on the HDD [actually so does disk defragmenting], the process is read, write new then delete old. The amount needed can vary but generally having at least 10% of the capacity free should work if the drive is not having problems with corrupted files. If 10% isn't enough it would be prudent to consider major problems with the HDD but I'd first try copying data to other media followed by deleting it or uninstalling programs enough to increase it.