If I wipe out the storage device does it wipe out the volumes and container as well?

I ran diskutil and noticed a bunch of extra volumes that I'd like to delete.

From what you posted from diskutil, none of them are "extra."

Everything on your Mac is as it should be.

Big Sur splits the drive into multiple volumes. The two main ones are the System volume (Mac HD) and the Data volume (Mac HD - Data).

Further, it creates a Preboot, VM, Recovery, and Update volume.

The com.apple.os.update.… volume is the Sealed snapshot of the boot volume (Mac HD). The Mac boots from that sealed snapshot which prevents any modification to the OS by anything.

What happens if I wipe everything out? If I plug a bootable Big Sur USB in safe mode will everything be restored? I'd like to start fresh.

You would completely wipe out everything, and then when you re-install, it will look exactly like it does now. You will not have changed a thing, but you will have wasted a lot of time. If it is an M1 Mac, you can possibly render it unusable until you take it to an Apple Store or use Apple Configurator on it from a second Mac.

Again, what you seek to do will not accomplish the goal you seek.

What is one trying to the achieved ?

Is there an issue wherein the computer is not functioning ? Is the computer Mal-functioning ?

Below is the Terminal to list all Volumes on this computer and looks much like yours.

So Suggest leaving the volumes alone as other Contributors have mentioned

p.phillips@Ps-Mac-Mini-M1 ~ % diskutil list

/dev/disk0 (internal):

   #:                       TYPE NAME                    SIZE       IDENTIFIER

   0:      GUID_partition_scheme                         251.0 GB   disk0

   1:             Apple_APFS_ISC ⁨⁩                        524.3 MB   disk0s1

   2:                 Apple_APFS ⁨Container disk3⁩         245.1 GB   disk0s2

   3:        Apple_APFS_Recovery ⁨⁩                        5.4 GB     disk0s3

/dev/disk3 (synthesized):

   #:                       TYPE NAME                    SIZE       IDENTIFIER

   0:      APFS Container Scheme -                      +245.1 GB   disk3

                                 Physical Store disk0s2

   1:                APFS Volume ⁨Macintosh HD⁩            15.3 GB    disk3s1

   2:              APFS Snapshot ⁨com.apple.os.update-...⁩ 15.3 GB    disk3s1s1

   3:                APFS Volume ⁨Preboot⁩                 249.2 MB   disk3s2

   4:                APFS Volume ⁨Recovery⁩                996.9 MB   disk3s3

   5:                APFS Volume ⁨Data⁩                    17.6 GB    disk3s5

   6:                APFS Volume ⁨VM⁩                      20.5 KB    disk3s6

Do not wipe out the Mac HD and the Mac HD - Data volumes or their devices. They both must be there for you to boot your Mac and have the needed User data and files. On your Mac outside of Disk Utility, you will only see it as one volume.

Don't touch them. They are all needed for booting and running the Mac OS and your setup.

Read the links below if you want to know more:

https://www.macworld.com/article/233490/why-you-might-see-a-new-data-disk-in-catalina.html

https://bombich.com/kb/ccc5/working-apfs-volume-groups

They are relevant, though a little dated.

I was getting a bunch of kernal panics, beach balling and the fans would spin real hot. I wiped everything and reinstalled the OS from a flash drive and everything seems back to normal now.

You likely had an incompatible third-party kernel extension installed which was removed when you erased and reinstalled.

as already correctly stated, DON'T try to remove them. they are all required.