Enter recovery mode to reset Apple silicon Mac without knowing FileVault recovery key or admin password

We have forgotten the recovery key for FileVault and the password for the admin account, we still have access to a local account but it is a standard user. We have access to no other Mac. How do you reinstall the OS and completely erase the disc so its like new and can regain access?

Upon entering startup manager and selecting 'Options', it asks for the recovery key which we do not have. Selecting 'Macintosh HD' just boots up to the log in screen.

Any help is appreciated, thanks