Do you have a Fusion drive?
Others users have reported same problem with iMacs.
Boot to Recovery and repair/First Aid the startup disk. You can't repair/First Aid the disk you booted from.
About macOS Recovery on Intel-based Mac computers - Apple Support
If you have Fusion drive, do the repair/First Aid on each disk individually.
If disk OK then delete the existing Monterey installer and boot to Safe Mode, which takes minutes and redownload the installer and try again.
How to use safe mode on your Mac - Apple Suppo
However, note that you need an Apple disk installed to upgrade to Monterey since the upgrade includes an update to the Mac's firmware. That update looks for an Apple disk and write to the dick to do the firmware update. The install will terminate or freeze if no Apple disk.