You used a Mode1 disc

The V31 image floating around is a poor clone, it is Mode1, whereas the original disc is Mode2

Trying to update a Mk3 from a Mode1 disc crashes the Mk3

You need to use an older image (like V28, V29, V30). These have been cloned correctly as Mode2/Form1

The software version is the same for a Mk3: the Mk3 software is no longer in development, last version is 3-1/63, and 3-1/63 is available on every OS disc from V22 and later. ie: V22...V31 all contain 3-1/63.

Burn using ImgBurn, it will stay as Mode2. Verify it post burn that the disc IS Mode2/Form1

then insert into Mk3, it should recover

Sometimes though the Mk3 will crash and die, just cross your fingers and hope yours hasn't died.