When you erase the startup disk of your Mac, it's important to erase the volume group, which contains the system volume and data volume. If that wasn't done, the macOS installer might need to quit because it sees no users available for authorization. Follow these steps to resolve the issue.
- Quit the macOS installer to return to the list of utilities in macOS Recovery.
- Select Disk Utility, then click Continue.
- In the Disk Utility sidebar, select the data volume, named Macintosh HD - Data.
- Click the Delete Volume button (–) in the toolbar, or choose Edit > Delete APFS Volume from the menu bar.
- Click Delete to confirm, then click Done when deleting is complete.
- Quit Disk Utility.
- The Activate Mac window appears. When it says your Mac is activated, click Exit to Recovery Utilities.
- Select Reinstall macOS Big Sur in the utilities window, then click Continue and follow the onscreen instructions. Installation should now proceed as expected.
If you erase your Mac again in the future, you can avoid this issue by erasing as described here: How to erase a Mac with Apple silicon.