Prohibited sign displayed while trying to enter options menu on M1 Macbook Air

I was going to erase and reinstall the OS on my 2020 MacBook Air M1 laptop. When I tried to enter the options menu, by holding down the power button, it does the following: First displays message about continuing to hold the power button to enter Options Menu. Then it flashes briefly (so fast you can barely see it) that it is entering the Options Menu, but goes directly to a black screen with an exclamation mark with a circle around it, and below that a link to a website to go to Apple support.

I contacted Apple, and they are putting me in touch with "an engineer" but I have never had good luck with that. First, has anyone else heard of this issue with the new M1 processor, and second, does anyone know another way to erase the drive and reinstall the OS with another laptop and Configurator 2? I did read of a way to erase the hard drive though Terminal, but not sure how to reinstall the OS after that, since I can't enter the options menu to select a bootable drive. Thank you!!