Can't create a user account on second-hand MacBook Air M1

Hello,

I recently bought a used MacBook Air M1. The device itself seems to be in pristine quality and has no signs of exterior or interior damage. It should be working without problems.

Due to a pre-existing user account, I decided to erase the MacOS installation and re-installed MacOS Big Sur, through the Recovery Menu.

However, when the installation finished, I saw that I was unable to create a user account. The screen would simply freeze for 5 minutes and then a pop-up would tell me that the account couldn't be created. After a reboot, I saw that the user account was displayed in the lock screen, however my assigned password wouldn't unlock it.

Here are the steps I've taken so far:

1. Restarted the System (obviously)
2. Erased all drives using the Disk Utility in Recovery Mode
3. Created a new Volume, which I named Macintosh HD (as suggested by numerous forum threads)
4. Re-installed MacOS Big Sur through Recovery Mode (multiple times, no change)
5. Removed the Device from my iCloud Account
6. Asked the original owner to remove the device from their iCloud Account
7. Attempted to use the "resetpassword" utility in order (failed, claiming it did not support the authentication)

I would kindly ask people not to suggest to simply reinstall Big Sur again. I've done so several times and the process takes several hours each time.

However, I would be very thankful for any sort of help that could be provided. I simply want to use the device and ditch my Windows PC, which thus far I am still dependent on.

Kind regards.