Internal SSD damaged on M1 Mac Mini.

You may need to try a DFU firmware Revive, but if you just want to wipe everything on the internal SSD & start with a clean OS, then do a DFU firmware Restore instead which will reset the security enclave chip & system firmware, as well as erase the internal SSD & push a clean copy of macOS onto the internal SSD.

How to revive or restore Mac firmware - Apple Support

I would run Apple Diagnostics ( Use Apple Diagnostics to test your Mac - Apple Support ) before heading to the Apple Store to see if you in fact have a dead internal SSD. If that is so, the only solution is to replace the logic board $$$$$.

If it passes the hardware test, there is likely a firmware issue that will still likely require an Apple Store visit where they could try to restore the system if you do not have access to a second Mac capable of running the latest Apple Configurator 2 app.

Thing to note: If you do not have any backup of your data on the Mac, it will most likely be lost with any method used to resolve the issue.

I’d schedule Apple in-store repair for a free diagnosis and $estimate$. In the meantime, slap yourself in the back for not going with a bigger SSD (and stick to 256 if you’re forced to buy new).

All the best 👍🤞

Do you have a Time Machine or other backup of your data?

What symptoms did you see before starting the attempted recovery?