Can't reset Password on start up

I have just unpacked a new Mac Mini M1 out the box, brand new! After setting up the machine and not pairing the mouse I switched off. On restart I was asked for a password. I had forgotten the PW. Entered it three times, each time wrong. I was was then prompted to reset PW through my Apple ID. Which I duly did.

On restarting the machine and entering the new PW it did not accept. I did it five times. This time I was not given the option of resetting the PW. How do I get past the start up without a PW?

I tried P+R to do a factory reset. Does not allow me to go to restore. Same start up screen appears. Can anyone please help me on this issue? I'm at wits end.