OP wrote in frustration:
"Totally stuck, if I can't find solution I need to brick my Macbook Air 2017"
OK, I'm going to lay out for you an alternative course to take.
It WON'T be for Monterey, however. It will be for Mojave.
You will need a WORKING MAC to get this job done.
PRINT OUT these instructions.
Here we go:
First, download the Mojave Patcher utility from here:
WE ARE NOT GOING TO "PATCH" ANYTHING, please keep reading.
Open the Mojave Patcher.
Dismiss any "error" message you see.
Next, go to the "tools" menu (in the menu bar).
See "download Mojave"?
THAT'S what we want, so choose it.
This will download a good copy of Mojave.
That's all we needed the Mojave Patcher for, you can quit it.
NEXT STEP:
Get a 16gb USB flash drive (USB3 preferred).
Use disk utility to erase it to HFS+ (Mac OS extended with journaling enabled, GUID partition format).
Leave it connected to the Mac for now.
NEXT STEP:
Download BOTH of the following FREE utilities:
1. DiskMaker X:
2. Install Disk Creator:
Remember, download BOTH of them.
NOW:
Use either Diskmaker or Install Disk Creator to create a bootable flashdrive (using the Mojave dmg file you downloaded).
VERY VERY IMPORTANT:
If one of these apps doesn't work,
TRY THE OTHER ONE.
OK, when that's done:
Take the flashdrive to the MBP.
Make sure it's powered off.
Now, boot from the flashdrive (press and HOLD DOWN the option key as the MBP boots to invoke the startup manager).
When the flashdrive is booted, open disk utility.
We are going to ERASE the ENTIRE internal drive.
VERY IMPORTANT STEP:
In disk utility, go to the "view" menu and choose SHOW ALL DEVICES.
You MUST NOT skip this step!
Now, look at the "list on the left". You should be able to see the physical drive inside the MBP.
Click on it, then click the erase button.
Erase to "APFS, GUID partition format".
When the erase is done, quit disk utility.
Now, open the OS installer and start clicking through.
The Mac will reboot one or more times, and the screen will go dark for a minute or more with no other indication of activity. Be patient.
When done, you should see the initial startup screen (choose your language).
At this point, PRESS AND HOLD DOWN the power-on button until the screen goes dark and the MBP shuts off.
It's ready for the new owner.
Good luck.