Interesting, had same issue as you are just yesterday. I was thinking that I have forgotten my password but it looks like some other issue is responsible. If you think you know your password, this helps:
If you have wait time for entering password, wait, than
Start mac in recovery (for Apple silicone macs, turn off your mac, press and hold start button until you see logo)
When in recovery, it will show your admin account click it, and login there. Make sure you have right keyboard selected, if you can use the same as is your HW keyboard. Login there works. You can change your password there. And it is done.
I still don't know why on login screen it didn't worked. But it did happen after update to 15.5.
P.S. Reset using cloud account for some reason didn't worked. I was connected to wifi, and after 5 min, I canceled the process, because nothing was happening.
What a mess Apple. What a mess.