It takes about 20-30 minutes to download Big Sur and send it to the M1.This will erase everything! You can also try Revive which tries to keep the data but this did not work for me In the menu, click Advanced then Restore.Hold until Configurator sees it - about 15-20 seconds This took me awhile to figure out but the easiest way is to hold all 3 keys on the keyboard first then power button last. If Configurator 2 can't see it, that means you didn't hold all keys down correctly or long enough.
Enter DFU mode on the M1 (hold Left-Ctrl + Left-Option + Right SHIFT + Power button) until it pops up in Configurator 2.Download Configurator 2 in the App Store on the other Mac and open it.Get a USB cable and connect both Mac's together - so USB-C/USB-C if it's newer or USB-A/USB-C for older.Then follow the instructions here which brought my M1 back to life. In that case, get another Mac - doesn't matter if it's an older Mac (2012 Pro/Air/Mini) as long as it can run Catalina and Configurator 2. If you did try the old way of booting to recovery / erasing drive, you'll get errors trying to reinstall and it won't go any further. Do NOT erase the drive using Disk Utility since it's already erased.