For the FORMAT user exit part:
Though the FORMAT user exit runs on the VM:Secure service machine, the work (formatting) is done on a servant (for those running with servant support) or on the user running the command (if NO servant support (SERVANT OFF)).
So, the exit controls what happens by issuing VM:Secure primitive macro calls to the SERVANT or USER, depending on the field cmdtarget passed to the exit. In your case, cmdtarget = SERVANT.
Since the servant is doing the formatting, the device doesn't exist on VM:Secure service machine, but on the SERVANT that will do the formatting. This is why you don't see the information for the disk on the CP Q V DA issued in the exit on VM:Secure.
See VMXEXITK XEXEC for prototype logic to help you send the commands needed to the VMSECURE servant to do the formatting you need to do. It can be found on the SAMPZ disk in the VMFSETUP for VM:Secure.