Directory server authentication error on M1 chip MacBook Air

My Mac is using the monetary version. When I forgot my password for my MacBook Air M1 chip, nothing in the official article about resetting my Mac didn’t work. Then, I went to recovery assistant and clicked on utilities to access terminal. In terminal, I typed in resetpassword to reset the password. But when I try to reset the password, it tells me that the system could not verify credentials because directory server does not support the requested authentication method. I searched through the internet but found that this problem mostly occurs to M1 chips. I do not want to erase Mac, and I tried to shut down and do the same process, but it still didn’t work. Can anyone please help me? I want to fix this issue and use my laptop again as soon as possible.

[Re-Titled by Moderator]