As a follow up, I tried installing Monterey to an external Thunderbolt drive rather than an internal SATA drive. For some reason, this ran without a hitch. Once I got this up and running, I tried transferring the installation to the internal drive using Superduper!, CCC and Disk Utility in that order. Only DU coped with the transfer; Superduper! failed to even copy a file across before having a breakdown, CCC managed 4GB and then proudly declared it was done, whilst DU just got on with it.
The only fly in the ointment is that the drive shows up on the Desktop as Monterey - Data, whilst the hidden protected counterpart volume has a bunch of letters and numbers, which clearly don't say Monterey. At least it runs fine so far.
Can't think why installations bomb on on the internal SATA but will throw DriveDx on it and see if the drive is having a bad time of it.