Try booting into Safe Mode.
You are booting from a very old version of macOS (installer) in that picture. Older versions of macOS don't understand the new drive layouts or file systems utilized by later versions of macOS (10.13+). Try booting into Internet Recovery Mode using Command + Option + R to see if you can access the Big Sur online installer. Unfortunately for some Macs they will only boot to the older macOS online installer regardless of the keys used to access Internet Recovery Mode.
If you have access to another compatible Qualifying Mac, then you can create a bootable macOS 11.x Big Sur installer using the instructions in this Apple article:
Create a bootable installer for macOS - Apple Support
A compatible Qualifying Mac for Big Sur is generally one from 2013 to 2020, but you can use the contents of this article to confirm:
https://eshop.macsales.com/guides/Mac_OS_X_Compatibility
If you do not have enough free space on the internal SSD, then you probably won't be able to use Internet Recovery Mode or a bootable USB installer to install Big Sur because these require even more free space to be available than running it from within macOS. You could install Big Sur to an external drive which you can then boot to the external drive in order to attempt to free up space on the internal drive, or to transfer any important data from the internal drive before completely erasing the internal drive. Or if you can only boot this older macOS installer, then install it to the external drive, then upgrade macOS on the external drive so you can access the internal drive.
FYI, people should always have frequent and regular backups of their computer and all external media (including the cloud) which contains important & unique data. It is also a good idea to make sure to have a current backup just before attempting to upgrade the OS or before making any other significant changes to the system.