Unable to sync music to iPod Nano 6th Gen on MacAir Monterey

My iPod nano 6gen has recently updated its software and while doing so, it erased all of the music I had on it.

When I connect it to my MacAir Monterey and open Finder, I can see my iPod as one of the connected devices as if it was a memory card or an external drive and the only thing I can do is eject it while the screen on the RH side should be full of sync options.

The iPod screen says "Connected, eject before disconnecting".

What am I doing wrong?

How can I sync my good old music library with my iPod?

Restoring the iPod to factory settings by holding the 2 buttons pressed together for 8 seconds doesn't solve the problem.