Update to 12.6.1 failed; now stuck in Recovery Mode loop
My update to 12.6.1 failed. My Mac Mini (M1) now boots straight into Recovery Mode without me having to hold down modifier key or do anything.
Recovery reports "Your computer started up in Recovery because of a problem. ... Reinstall macOS to resolve this issue."
I then follow the directions for re-installing macOS, but it ultimately fails. I have tried this ~6+ times. I have successfully used Disk Utility to repair the volume and I have run the M1 Diagnostic Tool (no issues found).
When I get to the "end" of the macOS re-install process, this error pops up:
"An error occurred preparing the update. Failed to prepare the software update. Please try again."
I do try again, and the same cycle repeats.
There seems to be an issue between 12.6 and 12.6.1; some screens indicate 12.6 is installed, and others indicate 12.6.1 is installed.