I have just gone through this this afternoon. I wanted to perform a clean install to fix my issues with iCloud Drive and Safari tab syncing. Unfortunately, it is not an easy process on M1 Macs yet. If I had known I would have just put it off. But, thanks to the posts on here, I was able to resolve the issue and perform a clean install of Big Sur on my M1 MBA.
After trying the various methods with no luck, I did a full restore using DFU mode and it finally worked. Using the Configurator 2 app to restore was a breeze, but getting the MacBook into DFU mode was tricky. This YouTube video helped a lot:
Unfortunately, my issues with iCloud syncing remain. After wasting all that time I have decided it is probably best to just wait for the next point update at this point.