So some backstory... when I got the laptop just a few weeks ago, it was running fine. But on snowleopard 10.6 (i believe) so i looked up how to upgrade it to El Capitan and followed instructions. Now when I turn the computer on, it shows the apple logo, and a progress bar underneath. When the progress finishes loading, it goes to my utilities menu (pictured in original post) It goes through the installation process but then at the very end it says something like "could not find files to install"
I have tried holding the option key down and it does nothing. Just goes straight to the progress bar and apple logo.
I have tried erasing the physical drive as well and it changed nothing.
I have also tried booting it from a flash drive but when I try to choose what to boot from it doesn't give me any options to select any sort of drive.
I wouldn't think its a bad hard drive because it was working just fine before. So I'm assuming that I messed something up along the way somewhere. I'm at a complete loss of what to try now.
***UPDATE***
From the installer/utilities menu (pictured in original post) now when i choose to reinstall OS it brings up a menu I havent seen before. Asking me to choose OS X Base System or Recovery HD. The weird thing is that it says the Recovery HD disk is locked so i can only choose the base system