macdan67 wrote:
Thank you! But I'd prefer not to touch the internal drive...
On an M-series Mac, It is no more risky than installing macOS to an external drive. Installing macOS to an external drive may still modify items on the hidden APFS system containers since they are used to boot from any drive (internal & external).
The option proposed by @Ian does require having at least 80-100GB of Free storage space on the internal SSD just to install a bare OS (you would need even more space if you wanted to migrate the items from the existing installation...not recommended unless you have very little data to migrate). Ignore the very misleading "Available" storage value since it is not synonymous with Free on macOS.
This option would provide important information about the issue and eliminate any possible USB & external drive related issues. If the same issue occurs installing into a new APFS volume on the internal SSD, then it implies you will likely need to even reinstall the existing OS on the internal SSD.
Finally, I think there's another problem. I tried again with a standard external drive (USB-C, not SSD), but that doesn't work either! When I try to continue the installation, I can no longer select the external drive. I get the following message: this volume cannot be used because it has a secure token without a user.
It's the same with both SSD drives I tried.
Any other ideas to avoid this message?
You may have some sort of issue with the Mac's secure enclave. Maybe a DFU Firmware Revive should be tried as it resets the secure enclave chip. Or it may require a more drastic measure of a DFU Firmware Restore which resets everything and destroys all data on the internal SSD.
How to revive or restore Mac firmware - Apple Support
Unfortunately Apple doesn't provide much information about the secure enclave chip, the new concept of "Ownership", or secure tokens. Unless someone who has this problem actually posts detailed information about the issue along with a solution, we are just grasping at straws.
I think we are reaching the end of what can be accomplished remotely online. I think you may need a local Apple expert to actually see your system in order to notice any small nuances that may be a clue to the problem. Some issues just cannot be solved remotely.