During reinstallation - "An error occurred preparing the update. Failed to personalize the software update.Please try again"

Exactly How ? was the Drive Erased my determine the remedial actions required to get the machine Functiong again.

If an error occurred while updating or installing macOS - Apple Support

Erasing the Top Level of an Apple Silicon Computer maybe ill-advised

It is not the same as the good old days when using the Intel Based computer

Apple Silicon Computer Must have a functional and work drive in order boot up.

Using the information from Apple and contained in below like should be enough to active the almost the " Out of the Box " Experience once again

like below

Erase your Mac and reset it to factory settings - Apple Support (CA)

Using the Erase All Content and Setting in above would effectively Not Touch the Existing Operating System

The Operating System, as it exists Now, would remain in tacked

There's nothing personal received here 😀

Some issues can be resolved on these Forums and some can not

If the user is more comfortable with an In Person Visit ;

1 - Have the computer evaluated by the Professionals who have the Special Hardware Software and Expertise to diagnose the issue and offer possible solutions

2 - Make an Appointment at the Apple Genius Bar and have them evaluate the computer