I don't believe that Monterey will INSTALL onto a flashdrive.
By this I DO NOT mean a "bootable flash drive installer".
I DO mean an OS installation that is "bootable to the finder".
There was a time when you could install a "working copy" of the OS onto a flashdrive or SD card.
But not any more.
Wando64 is absolutely right in reply 2.
If you want "a second boot source", what you need to do is:
a. Get a cheap 128gb or 256gb 2.5" SATA SSD (you can get 128gb SSD's for $20).
b. Get an enclosure for it, like this:
SABRENT 2.5 Inch SATA to USB 3.0 Tool Free External Hard Drive Enclosure [Optimized for SSD, Support UASP SATA III] Black (EC-UASP)
tinyurl.com
c. Install the OS onto that.
This will be a MUCH BETTER solution.