The recovery server could not be contacted

I have noticed the same issue before too and I tried a different network (home vs work network) and the recovery worked. I even did a recovery over cellular hotspot once before.

Another method could be to create a recovery USB on another Mac to use on this one.

Here is the support page from Apple:

Create a bootable installer for macOS - Apple Support (CA)

You may need to change a security setting first for it to boot from USB though:

About Startup Security Utility on a Mac with the Apple T2 Security Chip - Apple Support

If the Apple company had used servers from *** then this issue might not have occurred. (😅 joke, I just work in this company and the level of servers and their protection is really high. Apple, do you need servers?)

🥸 However, in a more serious tone, the suggested solution is to use the command-option-shift-R combination at startup to initiate internet recovery, which will restore the macOS (I lo❤️‍🔥e this OS!) version that originally shipped with your Mac. Additionally, if you have access to a USB-C to ethernet adapter and can connect directly to your modem, you can avoid potential issues with WiFi during the setup process.

[Edited by Moderator] 

Use command-option-shift-R at startup to load internet recovery. This will restore the OS that shipped with your Mac. The first black and white password screen may be the WiFi password. If you can get a USB-C to ethernet adapter, and hook to your modem, you will not have to work about WiFI in setting it up.

Just to let you know, you aren't alone. We as end users are puzzled as to why there has been no communication as to the status of these issues, and have shared this in the private forum with the moderators. You are welcome to call AppleCare to try to get to the bottom of this. As end users we are only volunteers trying to help.

tried this step many times, still giving me the same message when I try to reinstall from recovery macOS,

The recovery server could not be contacted.

tried this step many times, no progress, still the same

That doesn't work. Refer to the TOU B.5.