Unfortunately you made a mistake while erasing your M-series Mac. It is unfortunate that Apple has made these M-series Macs so mysterious & confusing without proper documentation of the changes between the Intel & M-series Macs.
When you erase or delete the hidden Container, then you will need to perform a DFU Firmware Restore (personal experience) in order to recreate the proper drive layout again. Unfortunately this process requires access to another Mac currently running macOS 26.x Tahoe or macOS 15.7+ Sequoia. I recommend you use the Apple Configurator 2 app currently at version 2.19 since the Finder may not provide as much feedback while trying to place the "broken" Mac into DFU Mode. Follow the instructions exactly....even then you may need to make multiple attempts to place it into DFU Mode.
How to revive or restore Mac firmware - Apple Support
You can try to create a new Partition with an APFS (top option) format, but I expect that will fail. From your picture of Disk Utility it appears you only have two partitions/Containers (normally hidden) and no APFS Container for the macOS system files. I recently tried erasing that third hidden Container or I may have deleted the "Volume Group" (contained "Macintosh HD" Volume Group with "Macintosh HD" system volume and a "Data" volume....possibly shown as "Macintosh HD - Data") instead of just deleting the "Volume Group". I wanted to see what would happen. I was unable to recreate it.
FYI, if you just want to reset the currently installed version of macOS to factory fresh conditions, then you can just use the "Erase All Content & Settings" which will have you seeing Setup Assistant again like when you first got your new Mac.
The other method for erasing the "disk" using Disk Utility is to erase the "Volume Group" which is on the line "Macintosh HD volumes".
Instructions for both methods are contained in the following Apple article which has two sections "Erase All Content & Settings" and the other section "If you cannot use Erase All Contents & Settings" resepectively:
Erase your Mac and reset it to factory settings - Apple Support