The message “Apple Account or password incorrect” does not, by itself, establish that Activation Lock is the cause.
After an erase, if the Mac displays “Activate Mac” or an Activation Lock screen, connect it to Wi-Fi and enter the Apple Account information requested.
Apple distinguishes these credentials from the password used to log in to a Mac user account.
Activation Lock can remain enabled after a Mac is erased. (Apple Support)
Because you have already reset your Apple Account password, the next step is to identify exactly which screen is rejecting the credentials.
If you are being asked for an Apple Account password during activation, use the Apple Account email address or phone number and its current password; Apple may also require a verification code. (Apple Support)
I would not perform another erase until we establish what screen you are seeing.
If you upload a photo of the screen containing “Apple Account or password incorrect,” we I can determine which Apple procedure applies and give you the appropriate next steps.
Apple’s relevant guidance is Activation Lock for Mac, If you forgot your Mac login password, and Erase your Mac and reset it to factory settings.