What this is is copy protection!
Well, first of all, a simple disk-level copy will error out at these sectors. Nothing will copy, it'll just go "bad disk" and abort.
That's impossible from standard PC drive controller. It's always going to write a valid sector. So no matter what value you put, it'll always succeed when Lotus 1-2-3 tries to read it back.
It checks these bad sectors, and if they succeed at being read, it knows the disk has been copied. It doesn't care what value is there, any value is wrong.
You might also be able to create them manually if you wrote a custom format routine... and used it on a degaussed disk.
You then reformat it so that only the sectors you want to be readable are there, instead of all of them.
They follow the same pattern, though, so I'm guessing that's used to tell the two disks apart?
Because these sectors are still physically on the disk, ie there is still some magnetic material there.
You could write to the disk and break your disk.
So what if you change the scheme from failing on reading, to failing on writing?
The copy protection routine could then find that sector, and try to read it. That'd report a failure, which is expected. It'd then try to write it, and then read it back...
But if that part of the disk is physically missing? writing will succeed and reading will fail.
Then when the code tries to read sectors 1,2,3,4,5,6 it won't be looking for 99 and will ignore them.
Then the drive will always be reading/writing track 16, but thinking it can seek to other tracks.
So you could have it write track "0" into track 16.