We may no longer install Sierra or High Sierra or earlier OS X versions using Recovery. Apple inexplicably and silently pulled the plug on that option a while ago. It may also explain the inability to find the TM backup drive, since the Mac's built-in Recovery firmware is expecting to find services that are no longer available.
... all disks pass disk first aid.
There should not be more than one internal device to erase. The apparent reference to multiple disks does not seem correct to me.
Begin with Use Disk Utility to erase an Intel-based Mac - Apple Support. When selecting the device to erase, be sure to include Step 4. There should not be more than one disk.
Try using the key combination described in How to reinstall macOS - Apple Support under the heading "If you're using any other Mac" when booting Recovery:
- Option-Command-R: When you press and hold these three keys at startup, macOS Recovery might offer the latest macOS that is compatible with your Mac.
If successful, that will result in Monterey. High Sierra and earlier are gone.

Assuming the above works, and given your desire to sell that Mac, when the Mac restarts and the "Hello" screen (hopefully) appears, just shut down the Mac. That is the condition in which to sell it.