I did not look closely at the photo since it was so small and rotated 90 degrees (I have trouble reading sideways) and I'm lazy when I'm on my own time. In the future rotate the pictures before posting them here. If you used an iPhone to take the picture, then you just need to select the "Edit" option which will give you access to the rotation tool so that you can save the edited picture so it is showing correctly on the iPhone before posting or sent to the computer.
Has macOS Monterey ever been installed on this laptop before?
Does this laptop use a third party SSD?
Double check the SSD has been formatted as GUID partition and APFS since one of the pictures is showing the internal drive is formatted as HFS which won't work with Monterey.
Are you booting into Internet Recovery Mode (Command + Option + R) or from a bootable macOS 12.x Monterey USB installer? If the latter, then how did you create the macOS USB installer? You may need to try using another USB stick especially a different brand since the quality of USB sticks is extremely poor and Macs can be very particular about the drives used for booting. Here is an Apple article with instructions for creating a bootable macOS USB installer (using any other methods may lead to problems installing):
How to create a bootable installer for macOS - Apple Support
You can try first writing zeroes to the beginning of the SSD in order to destroy the partition table. Sometimes macOS can get confused if it encounters something unexpected. While booted to the macOS 10.13+ installer launch the Terminal app from the Utilities menu and run the following commands to unmount all volumes on the SSD and write zeroes to the beginning of the drive. I highly recommend disconnecting all external devices (especially drives) so that they are not accidentally erased. You should also double check that the physical drive is still "disk0". My commands assume the physical internal drive is still "disk0" as shown in the photo, so modify my commands if the internal physical drive is using some other drive identifier or you may destroy the data on the wrong drive.
Check drive identifier:
diskutil list internal
Unmount all volumes on the physical drive (assuming "disk0" -- change if necessary if the drive identifier from the above command is different):
diskutil unmountDisk disk0
Write zeroes to beginning of drive "disk0" (change as needed):
sudo dd if=/dev/zero of=/dev/disk0 bs=100m count=10
After this try using Disk Utility app to erase the physical drive as GUID partition and APFS (top option).
Make sure to disconnect all external devices in case one of them is causing a problem while installing macOS.
If this does not help, then perhaps the diagnostic error code is actually reporting an intermittent SSD failure which may be while you are having trouble.