how to reset or recover my startup password on my M1 Mac mini

Strongly suggest connecting a USB Keyboard and Mouse for this operation as Bluetooth of each maybe problematic to connect in this mode.

Reset Password 

Intel Computer

1 - Restart computer and immediately hold Command + r keys

2 - Top Tool Bar >> Utilities >> Terminal

3 - Copy and Paste resetpassword as one word and no spaces

Press Return key

4 - Follow the prompts and remember the New Password

M1 Computer 

1 - Choose Apple menu > > Shut Down.

2 - Press and hold the power button on your Mac until you see “Loading startup options.”

3 - Click Options, then click Continue. 

4 - Top Tool Bar >> Utilities >> Terminal

5 - Copy and Paste resetpassword as one word and no spaces

Press Return key

6 - Follow the prompts and remember the New Password