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Monterey rev 12.4 - Hash mismatch

I am getting this error - it also is having issues with an external monitor and Zoom (crashes the MacBook Pro 2019) I have a time machine back up and did the suggested T2 Erase all content and settings process - which didn't help. I am now thinking I need to reformat the HD and and reinstall the OS - but I'm worried that if I then restore the Time Machine back up it will re-install the corrupt OS over the top of the fresh install.

Is that the case and if so how to I avoid this issue?

Hope someone can help.