“The version of macOS on the selected disk needs to be reinstalled. Use Recovery to reinstall macOS or select another startup disk.”

I had to go to an apple support centre. On my machine the recovery containers were corrupted or wiped. the trouble occurred following a repair

I believe that if you have a memory stick with MACOS on it you can also recover that way. For future use you can reinstall from preferences, erase all content and settings. I suggest creating a full macOS version on a memory stick.

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Do you have a question for us? If the message is saying the you need to reinstall the Mac's OS, that is because that is what is needed. If your wireless mouse is no longer able to be used, then plug in a wired USB mouse to do the setup. Restart the Mac and press the Option + Command + R keys to use the Internet Recovery mode and it will install the latest OS that is compatible for your computer.

Did you ever find a solution to this? I’m having the same problem with a used m1 Mac book pro I got online.

That is not the problem. I have it too. I cannot reinstall from time machine, recovery or a USB Stick with a fresh install snd cannot find a solution