How To Fix "Failed to Personalize the Software Update" on M1 Macs
If you erased your Mac with Apple M1 chip, you might be unable to reinstall macOS from macOS Recovery.
A message might say "An error occurred while preparing the update. Failed to personalize the software update. Please try again."
Note: Your machine needs to be connceted to internet via Wifi or Ethernet
Power off your machine.
Press and hold the power button until the Recovery Mode starts.
From the top menu bar select "Utilities" and click "Terminal"
Inside terminal type:
resetpassword which will open a reset password utility window.
Note: It is normal for the window to read "Reset Password Failed", this will not affect the rest of the process
Make sure the Recovery Assistant window is selected, go to the top menu & select "Recovery Assistant" & click "Erase Mac".
Click "Erase Mac" in blue text, and again in the pop-up menu after.
After the erase has completed you will be prompted to re-install your mac again normally.