Notice (Post #17) that OP's boot drive has only two partitions, one is only 524 MB, and probably just a firmware partition, somewhat equivalent to boot blocks in Windows.
The other partition is only about 5GB, and is the recovery partition, which could restore the current macOS, if the drive would have a formatted volume to hold it. There's another "free space" of 245 GB. Free space is, well, free space -- not a formatted partition - it's just - empty. So the boot drive has no space on the drive allocated to a volume providing enough space to install the system, let alone everything else the OP might want to add.
So, the drive needs to be formatted/initialized/whatever you want to call it. If Disk Utility won't do anything, then it is possible that there may be a terminal command (diskutil, etc) that will make the attempt to clear the SSD for actual use.
Is this something that the Configurator utility also can do? (I've very little time on an AS Mac, so far, so don't know about that tool yet --- but, I would believe that the OP needs to boot to an external drive, and erase the internal SSD completely. I think that right now, OP is booting to the recovery system, on the same drive where the boot system SHOULD be, and that needs to be reinstalled to a completely blank SSD (no firmware partition, and no recovery system), and build back to a, hopefully correct, full system install.
Again, isn't that something that Configurator 2 utility is supposed to do?
The other partition is only about 5GB, and is the recovery partition, which could restore the current macOS, if the drive would have a formatted volume to hold it. There's another "free space" of 245 GB. Free space is, well, free space -- not a formatted partition - it's just - empty. So the boot drive has no space on the drive allocated to a volume providing enough space to install the system, let alone everything else the OP might want to add.
So, the drive needs to be formatted/initialized/whatever you want to call it. If Disk Utility won't do anything, then it is possible that there may be a terminal command (diskutil, etc) that will make the attempt to clear the SSD for actual use.
Is this something that the Configurator utility also can do? (I've very little time on an AS Mac, so far, so don't know about that tool yet --- but, I would believe that the OP needs to boot to an external drive, and erase the internal SSD completely. I think that right now, OP is booting to the recovery system, on the same drive where the boot system SHOULD be, and that needs to be reinstalled to a completely blank SSD (no firmware partition, and no recovery system), and build back to a, hopefully correct, full system install.
Again, isn't that something that Configurator 2 utility is supposed to do?