Unable to set startup disk after clean MacOS install

After frequent kernel panics on my M1 Macbook Air I have erased the Macintosh HD volume according to Use Disk Utility to erase a Mac with Apple silicon - Apple Support and reinstalled MacOS according to How to reinstall macOS - Apple Support. After restarting and connecting to WIFI, I am prompted to choose a startup disk, with "Macintosh HD" being the only option. However, when I try to restart from this drive I get the error "Unable to set startup disk - An error occurred while setting "Macintosh HD" as the startup disk: The operation couldn't be completed. (SDErrorDomain error 108.)" I have erased the drive and reinstalled MacOS one more time but the error persists. I can't select the drive from the boot menu either (neither in secure mode nor in "normal" mode). Note that this is the built-in SSD, not an external drive. I'm quite at a loss what to try next. Any advice?