Use macOS Recovery on a Mac with Apple silicon
Copy and paste portion of the information for above link
It implies the Erase All Content and Setting was perform while already booting into the existing Installation of of Monterey
Then to Bootable Installer becomes irrelevant to the Re-Installation process IMHO
Erase and reinstall macOS
If you erase and reinstall macOS, your user accounts, network settings, and all of the files and folders on your Mac are deleted. Before you erase macOS, attempt to log back in to your system, then back up any files you want to keep by copying them to another storage device. Also, write down your network settings from Network preferences to make it easier to get connected again after reinstalling macOS.
- Make sure you’re connected to the internet.
- In the Recovery app, click Disk Utility, then click Continue.
- In Disk Utility, select the volume you want to erase in the sidebar, then click the Erase button in the toolbar.
- Type a name for the volume in the Name field.
- Click the Format pop-up menu, choose APFS, then click Erase Volume Group.
- When the erase process is complete, click Done, then choose Disk Utility > Quit Disk Utility.
- In the Recovery app, click Reinstall macOS Monterey, click Continue, then follow the onscreen instructions.