Winimage can do that. But a USB floppy disk drive can't do that because due to cheap controller they can't do a full format.

Is that x64 Win7? Try a 32-bit OS, preferably WinXP. Microsoft removed a lot of floppy support from their 64-bit Windows. I have a pretty decent USB floppy drive and I can do things like custom formats on WinXP just fine, but not on any modern systems. That being said, I've never tried this DMF format but AFAIK it's just more sectors per track, like we used to to do back in the day with 3rd party utils on DOS. If a PC FDC can read such floppies it should also be able to write to them and format as well. But, as Deksor mentioned, this is true for native controllers, the USB ones might be lacking and have some parameters baked-in the FW.

Back in the mid-90's (1994/95) you were able to create those "strange" floppy format's, using stock floppy disks, for both Os/2-Warp and Win95. If you wanted to install the CD based version of those operating systems, on a computer that did not have any CD-Drive. Those disks that you have found, are physically just basic 1.44mb Floppy disks, that might just be of higher quality than stock disks.

I have noticed, that whenever I have formatted a 1.44mb floppy disk to 880kb Amiga format, then my USB floppy reader will not format them back to 1.44mb format. The issue is the controller that the drive is communicating through. In my case USB. So if you have access to an old 90's 486 based PC, then you are able to format those floppy disks. You can even use a Win98 based Pentium3 machine for all I know. Just not a completely modern machine, with the use of USB Floppy disk drives.