I finally fixed the issue of fully resetting my MacBook pro M3 to factory settings. COMPLETELY WIPED THE THING!!! It must have been a setting somewhere in the computer that I toggled on by my mistake or something and could not find it, possibly...?
Then when you reset everything and set it up, I chose to start from scratch. I'm thinking it might have been the ESET program I had but still not sure. But anyway, before you download anything, sign in on MacBook with your apple account and then go through the process of setting up Chat GPT in the settings and BAM, it worked for me. Then I continued to download the rest of my security programs and what not. If you have everything backed up in the iCloud, then it's pretty straight forward. Hope this helps.