MacBook Air 2020 (Intel) stuck in Internet Recovery despite key combinations and Apple Configurator attempts

Hello.

So the unit is a Macbook Air 2020 (Intel), and im seeing some very odd behaviour. It keeps booting up to Internet Recovery, no matter what i do.

Goal : Reinstall - data is not important.

Tested :

PRAM/NVRAM and SMC reset - done.

Any key combination for diagnostic, recovery, boot up on USB - all those kind of key combinations - not working.

Apple Configurator - tried using Restore. I can manage to get it to DFU mode, and configurator can see the unit. When running Restore, at some point in that process - it shows a lock icon, and im back to square one.

Idea to test for next : Get iphone, which hopefully is logged in with the same AppleID, and see if i can remove the Macbook Air from the AppleID - i dont know if thats even a solution. But the lock icon makes me believe its somehow locked to something.

Does anyone have any ideas ?

Thanks in advance.

[Re-Titled by Moderator]

Original Title: Macbook Air 2020 (Intel) - Wierd behaviour - Cant start diagnostics or anything beside Internet recovery