Instead of trying to Migrate using a Time Machine Backup, I recommend using the Migration Assistant. Migration Assistant is found in the Utilities folder inside the Applications folder. Migration Assistant allows you to migrate wirelessly. After migration I was able to use the Password that I entered at the beginning of the process without a problem; whereas with Time Machine restore I was not. For more on Migration Assistant, please see this Support doc from Apple:
Transfer your data to your new MacBook Pro - Apple Support
When the Time Machine Restore fails, and you can't login using the Password that you setup at the beginning of the process, you'll need to first reinstall the MacOS using Recovery Mode (Command (⌘) R). And when you're given the option to Migrate to your new Mac, start the Migration Assistant on your old Mac and wait for your new Mac to see your old Mac on the network and connect to it. Migration is slower, but it works.
PS: There is still one last option available to you if Time Machine fails and Migration Assistant fails, namely connecting the Startup Disk from your old Mac to your new Mac and performing the Migration from the Startup Disk. Note that you can clone your old hard disk onto an external drive if removing the old drive and putting it in an external enclosure is not possible / too difficult. See the instructions here for doing this: https://mactakeawaydata.com/clone-mac-boot-drive/)
