Cannot access terminal in recovery mode on M1 Mac

I am trying to follow this tutorial to temporaily disable SIP on my new M1 MacBook Air.

Once I get into recovery mode, instead of seeing a Utilities menu where I can open the terminal, I see a message that says "There are no users on this volume to recover" (image here) and all I can do from here is restart the computer.

What do I need to do so that I'm prompted to enter my administrator password and access the terminal in recovery mode?

I was having the same issue on my Mac Mini M1. To solve it, I had to restore the Mac Mini using Apple Configurator 2. Please have a look here to learn how to do that: https://support.apple.com/guide/apple-configurator-2/revive-or-restore-a-mac-with-apple-silicon-apdd5f3c75ad/mac