i have a request for you ( it's very important)

Reset Computer Password  for the Administrator Account Password

Apple Silicon M1 / M2 Computer 

1 - Choose Apple menu > > Shut Down.

2- Do not  attempt a Restart to access this feature. The computer Must be Shutdown and pause for about 10 seconds before moving forwards 

 3 - Press and hold the power button on your Mac until you see “Loading startup options.”

4 - Click Options, then click Continue. 

5 - Top Tool Bar >> Utilities >> Terminal

6 - Type resetpassword as one word and no spaces

7 - Press Return key

8 - Follow the prompts and remember the New Password

From your original image above and the fine print in lower portion of that image

" Could not verify credentials because directory server does not support the requested

authentication method."

Suspect this computer may or may not be enrolled in a Mobile Digital Management Service

Open Directory Utility - Apple Support (CA)

Excerpt for above link

Directory server

A directory server is a computer that contains a database of user, group, and computer accounts and shares that information with other computers and devices. Examples of directory servers are Active Directory (Windows) and OpenLDAP (an open-source directory service).

If the above assertion is correct ( not good a MDM Services ) suggest communicating with the Admin of this MDM for assistance.

Review this article on MDM:

Choose an MDM solution - Apple Support