Urgent - How to properly reset MacOS Monterey on MacBook M1

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I was goign to reset my new Macbook Air M1, but I clicked there instead of disk utility and manually formatting the drive later on. Looking online, I've seen one guy doing it...

Does it make any difference??
The laptop is brand new from Apple, but I wanted to start afresh anyway.

I think that the biggest difference is the full disk encryption, considering that you can encrypt the drive from disk utility and therefore creating the full disk encryption prior the OS re-installation.
Not an issue, previously I was just looking the OS, so I didn't do anything important, but I wonder if the OS reinstallation is actually the whole process I needed.
 

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MBP 16" 2023 (M3 Pro), iPhone 15 Pro, plus ATVs, AWatch, MacMinis (multiple)
What is it you are trying to do? If all you want is to reinstall the OS, what you checked will do that, leaving your files in place. If you wanted to totally reset to factory, you can do that in two ways--one is to reformat the drive and reinstall the OS, the other is to erase all content and settings. Here is an article on that second option: Erase All Contents and Settings: prepare your Mac for disposal and more

So, what is it you wanted to do? And what does full disk encryption have to do with it?
 
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Soon I will solve this tribal process :D , but I understood what I have to do.

Bugs on the way:

1. Wifi disappeared, no way to get it back ON, luckily for me I had an adapter with ethernet...
2. I formatted the M2, then I cannot install the OS because I encrypted it in advance (that's what the message says), this is ridiculus :D
 
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Well, can you un-encrypt it again? And if not, maybe the process I linked to in post #3 will let you start from scratch. If you can't and you get stuck, you may have to visit Apple, with proof of ownership, to get them to unlock it.
 
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I resolved it, I had to re-create the volume, I think that my custom way to go was not tested by Apple, hence the bug, I'll report it, still not angry though :D .
Thanks for your help.
 

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