If I recall, the 2020 iMacs are the only ones that have the t2 chip, which could impact things here.
The first thing you should do is to boot to recovery (I would suggest internet recovery instead, "command-OPTION-R" at boot).
Then go to the startup security utility and choose the LOWEST security for everything.
I would also open terminal and disable system integrity protection by entering:
csrutil disable
You might have to reboot to activate the disabling of SIP.
I don't think you can "get around" having to go to recovery FIRST to do the above.
Again, this is because of the t2 chip.
MORE to consider.
Mac OS Monterey has the "sealed system volume".
I'm wondering how this is going to impact things with an Intel CPU.
I know that you COULDN'T do what you want with Apple Silicon.
And again, it used to be EASY to use CCC to do a complete restore (OS & data) BEFORE the t2 and sealed system volume. But now...?? Other users need to jump in with more experience.
If it was me, I'd do this:
1. Create a bootable USB flashdrive with the Montery installer (16gb flashdrive or larger)
2. Do a final CCC backup, then set it aside for the moment
3. Boot from the flashdrive installer
4. ERASE the internal drive to APFS
5. Install a completely fresh copy of Monterey
6. During setup, connect the CCC backup and migrate apps, accounts, data, etc., from that.
Doing it this way ensures that the t2 and sealed system volume won't become issues.
Again, looking for experiences from others...