Weird thing happen in mac os recovery

It appears the User ( you ) have somehow created a New Container and installed macOS 12 Monterey into this New Container

That , in and of itself, would have left the " Sealed and Read Only " of Sonoma 14.3 on the drive

Suggest running this Terminal Command

diskutil list

Also in Disk Utilities >> View All Devices

Be sure to expand all container below the Physical Disk ( Top Most Level )

Provide the output of the Terminal Command

Provide a Screen Shot from Disk Utilities using the " Image Insertion" icon ( Second to Last )

Start up from macOS Recovery

Command-R is generally recommended, especially if you never installed macOS Sierra 10.12.4 or later… How to reinstall macOS - Apple Support

Command (⌘)-R

Install the latest macOS that was installed on your Mac.

Option-⌘-R

Upgrade to the latest macOS compatible with your Mac.

Shift-Option-⌘-R

Install the macOS that came with your Mac, or the closest version still available.

2. Decide whether to erase (format) your disk

If you need to erase your disk before installing macOS, select Disk Utility from the Utilities window, then click Continue. You probably don't need to erase, unless you're selling or giving away your Mac or have an issue that requires you to erase. Learn more about when and how to erase.

3. Install macOS

After starting up from macOS Recovery, follow these steps to install macOS:

1. Choose Reinstall macOS (or Reinstall OS X) from the Utilities window.
2. Click Continue, then follow the onscreen instructions to choose your disk and begin installation.
3. If the installer asks to unlock your disk, enter the password you use to log in to your Mac. If it doesn't see your disk, or it says that it can't install on your computer or volume, you might need to erase your disk. 

1. Please allow installation to complete without putting your Mac to sleep or closing its lid. During installation, your Mac might restart and show a progress bar several times, and the screen might be empty for minutes at a time.

If your Mac restarts to a setup assistant, but you're selling or giving it away, press Command-Q to quit the assistant without completing setup. Then click Shut Down. When the new owner starts up the Mac, they can use their own information to complete setup.

If you never installed macOS Sierra 10.12.4

If macOS Sierra 10.12.4 or later was never installed on your Mac, macOS Recovery works differently:

• Command-R is still the recommended way to start up from macOS Recovery. This combination makes sure that the installation isn't associated with your Apple ID, which is important if you're selling or giving away your Mac.
• Option-Command-R installs the macOS that came with your Mac, or the closest version still available.
• Shift-Option-Command-R isn't available.

How to reinstall macOS - Apple Support 

Of course you may need to make a USB installer...

Create a bootable installer for macOS - Apple Support...

Create a bootable installer for macOS - Apple Support

Be sure you have a good backup or two first.

I have no idea what version of macOS the M-series Macs provide when using Recovery Mode as it does not seem to be documented by Apple. If you want to install a specific version of macOS, then create a bootable macOS USB installer using the link @BDAqua provided near the end of their post.

Make sure to properly erase the disk before selecting the "Install macOS" option. For an M-series Mac you need to make sure to delete the Volume Group when prompted.

You should consider installing macOS Ventura instead of Monterey since Monterey will stop receiving updates later this year and many online apps will also stop receiving updates even from third parties which means any apps requiring online access will sooner or later no longer function as the websites & Internet change.