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How to reset MacBook M1 Pro to Factory status?

New 16” MAcBook M1 Pro
I spent 3 days installing software. It was working fine then I guess I installed the wrong piece of software – perhaps “Little Snitch”. Then beach balls when I try to do anything.
When I reboot, It will load several windows, most of which I can quit.
But if I try to get anything to work – beachballitis.

I tried “recovery”. Re-installed Monterey from the recovery menu – same thing as above.

How can I get it back to factory state and start over since I cant open the software? Apple should have a factory reset in the recovery menu.

Is there a terminal command that will download and re-install the operating system to fresh?

 

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