Accidentally deleted MacHD, Failed macOS Monterey reinstall on MacBook Pro

Hi, I need guidance! I was trying to clear my Macbook Pro A1506 (2015, was running MacOS Monterey), with a 256GB SSD, for resale. In Disk Utility, I accidentally deleted the Macbook HD (yeah, there's a story behind that, oops, deed is done). So I tried making a new partition "Macbook HD" with APFS, and then reinstalling OS X. This seemed to be progressing as normal, and then failed and sent me into internet recovery and wants install an older version of Mac OS (now I forget which one). Also, it doesn't give me the option for APFS.

I'm attaching pictures of what I see in that version of "OS X Utilities" (as well as a couple earlier screenshots before this disaster, showing the details of the computer while still running Monterey).

What is the best route to getting back to a working HD with Monterey on it? If you ask, Do I have a Time Machine backup? Yes, well, it's been inherited by a new MacBook and that has upgraded to newest OS (Tahoe), so I don't think that will help.

Your wisdom and guidance will be much appreciated!!

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