Please describe exactly how the Time Machine External Hard Disk is connected to the 2020 iMac? Remember we cannot look over shoulder so we rely on you to write a good description. For example, "My Time Machine External Hard Disk is connected to my wireless router using a USB cable and I am attempting to use Migration Assistant to migrate from the Time Machine External Hard Disk to my new 27" 2020 iMac. "
The fastest and most reliable method is to connect the old Mac's Time Machine (or bootable clone External Hard Disk) to the new Mac using a USB Cable directly connected to one of the iMacs USB ports, launch Migration Assistant and your migration should be done within a couple of hours. When I set up my new 2020 iMac (actually I bought 2, one for me and one for my wife) I used this method and had them both set up an running within 3 hours from taking them out of the box. Any other method is unreliable and prone to failure.