Command-R does not start my MacBook Air w/M1 processor in macOS Recovery.

I traded up from a 2019 MacBook Air to the new M1 chip 2020 MacBook Air. Restored from Time Machine. Getting and error that I cannot use Apple Pay on this new MacBook because the security setting aren't high enough. Instructions suggest starting in macOS Recover by using Command-R at start-up, but the MacBook always starts up normally.

After transferring data via Time Machine, I followed instructions and signed out of my iCloud account and other AppleID "things" before reformatting the old MacBook and reinstalling the OS. I still see that old MacBook on my list of devices. Shouldn't that have gone away?