The first time a Mac installs macOS 10.13, 10.14, 10.15, 11.x, and 12.x to either an internal or external drive, the macOS 10.13+ installer requires a working properly erased (i.e. partitioned & formatted) internal drive for use with macOS. The Monterey installer also appears to require an internal original Apple OEM SSD as an additional requirement. The internal drive does not need to have any files on the drive. The internal drive's only requirement is to be properly erased using Disk Utility as GUID partition and HFS+/APFS (depends on the installer) so that the macOS 10.13+ installer can place the Mac's system firmware updater onto the internal drive. When the installer reboots the Mac, the system firmware updater will be run to update the Mac's system firmware, then later finish the macOS installation & setup.
AFAIK, once the system firmware has been updated by the macOS installer, then that particular macOS installer no longer requires a working properly erased internal drive since the system firmware updater included in the macOS installer no longer needs to be run since the Mac's system firmware is already up to date.
The internal drive requirement seems to be dictated by the system firmware updater included in each macOS 10.13+ installers. The older pre-macOS 10.13 installers did not have this requirement (I don't believe the older macOS installers included a system firmware updater -- or at least did not include any hardware requirements -- I seem to recall reading that Apple only began including the system firmware updaters in the macOS installers beginning with 10.13 since Macs were not getting their firmware updated with the regular macOS patches). I believe it may be possible to pull the firmware updater from the macOS installer and manually update the Mac's firmware, but I've never had the time to investigate this option and probably will never have the time (I may not even have the necessary knowledge to pull it off -- plus I would need to risk bricking a Mac if I failed).
FYI, the earlier Apple SSDs in the older non-USB-C Macs would have the Apple name on them, but would have the manufacturer's initials on the actual model number shown in the System Profiler and other utilities (SM, SD, TS for Samsung, SanDisk, Toshiba), but the SSDs for the USB-C Macs now have only the Apple initials of "AP" on the SSD's model number.