/Applications/Install macOS Monterey.app does not appear to be a valid OS installer application.

If you are not currently running Monterey, the installer you download is not a complete installer. It can't be used to make a bootable installer.

If you are running Catalina or later, you can try downloading the full installer from Terminal. Delete or move the other copy, first.

softwareupdate --list-full-installers

If it lists any of the Monterey versions, use this with the desired version number.

softwareupdate --fetch-full-installer --full-installer-version 12.4

That should download the full version from which you can create a bootable installer.

It would help if you would post the contents of the Terminal window for the command issued and the error message. When posting Terminal output please paste it into the "Code Insertion" tool whose icon looks like "<>" so it is easier to read the text especially regarding spaces, or post a screenshot.

If you are issuing the command correctly, then it would seem the Monterey installer may be damaged. Delete the installer from the Applications folder and empty the Trash. Then download the Monterey installer again to try the commands again.

Here is the Apple article with instructions for creating a bootable macOS USB installer as well as links to various macOS installers:

How to create a bootable installer for macOS - Apple Support