iMac has Latest Monterey Update, but DOES NOT have erase option

"Erase all content and settings" is wording that is used by Apple for iPhones and iPads. See: How to erase your iPhone, iPad, or iPod touch - Apple Support

To erase a Mac, see: What to do before you sell, give away, or trade in your Mac - Apple Support

System Preferences - System Preferences (menu) - Erase all contents and Settings

Erase all content and settings on Mac - Apple Support

It is brand new with Monterey. The old method was the user had to log into the Recovery Partition and do this. When Monterey was introduced Apple found a method of doing this and were careful to put it in a part of Mac OS where it is not too obvious that a user would accidentally execute the command.

I learned something new -- I never think of the menu in System Preferences (and search in System Preferences apparently doesn't either).

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