I have 2015 MBA. Tried to restore from my Time Machine drive that's always worked before. I had put OCLP/Sonoma on it and ran that for a couple months. Loaded Monterey 12.7.6 from USB installer(yes, erased entire drive every time), then tried to restore the backup. Would always get stuck after I selected the drive which it always saw fine, and click next. Would NOT go past that. Tried reloading Monterey from USB and restoring it several times. Just would not work. I did setup the machine with an admin account with no Apple ID and tried to do it at that point, still same. I could however, drill down into the drive in Finder and see files, so I don't think the drive is totally bad. I have a 2015 MBP that I setup with that very same drive last year, but got a separate drive for it for Time Machine backups. I ended up restoring the Air from that. All back up and running on it. Anyone ever see this before or have any insight?.
