Migration assistant fails to copy any of the apps/data from my Time Capsule to my M1. Is it compatible? Also, it fails a lot.

Fixed: Apple's Customer support helped me after my struggling for 5 days.

Reference: https://support.apple.com/en-us/HT211983

1. Turn on your Mac and continue to press and hold the power button until you see the startup options window. Select Options, then click Continue.
2. When you're asked to select a user you know the password for, select the user, click Next, then enter their administrator password. 
3. When you see the utilities window (shown here), choose Utilities > Terminal from the menu bar.
4. Type resetpassword in Terminal, then press Return. 
5. Click the Reset Password window to bring it to the front, then choose Recovery Assistant > Erase Mac from the menu bar. 
6. Click Erase Mac in the window that opens, then click Erase Mac again to confirm. When done, your Mac restarts automatically.
7. Choose your language when prompted during startup.
8. If you see an alert that the version of macOS on the selected disk needs to be reinstalled, click macOS Utilities.
9. Your Mac will begin activating, which requires an internet connection. When your Mac is activated, click Exit to Recovery Utilities.
10. Perform steps 3 through 9 once more, then continue to the next section, below.

So I called up Apple Support. They suggested I use a direct ethernet cable to do the transfer. Migration assistant failed yet again after 45 minutes.