"Why can't I install Mac OS 26 onto external and boot from it?"
You
can.
You just have to do it carefully.
And... even when you do it carefully, sometimes it STILL can fail on you.
I think this is the process that worked for me:
a. boot up from your existing OS (did you tell us what that is?)
b. format your external SSD to APFS, GUID partition format, and make sure case is set to INsensitive.
c. I recommend you go to Mr. Macintosh's page here to get a direct download URL:
Download macOS Tahoe full installer with one click straight from Apple! Every version of Tahoe Beta & Final available all in one place!!
mrmacintosh.com
d. the file (from Mr. Macintosh) will download as a pkg file. I SUGGEST that you set Safari to download this right to your dekstop.
e. double-click the package file and run the installer.
THIS DOESN'T INSTALL THE OS. Instead, it places the installer app into your applications folder.
f. now launch the installer app. When it asks you WHERE to install, "point it" at the EXTERNAL drive and turn it loose.
g. the install is going to take a while, involving several reboots, firmware update, etc. One just has to be patient.
h. when done, you'll see the initial setup screen.
AT THIS POINT, you need to decide how you're going to proceed:
- do you want a completely fresh setup (new account, etc.)?
- do you want to migrate from your existing account?
- do you want something else (you mentioned "recovery" from an old MBP above)?
I'd suggest a new account.
There are "ways" to get stuff onto it and working from your older accounts.
If you want to recover stuff from the old MBP, tell us what year it was made and what OS was running on it. We need those particulars to advise further.
Again, the above process worked for me.
But I, too, had one or two "failures" before I got it right and got Tahoe running on an external SSD.
(BTW, DON'T try installing a modern Mac OS onto a platter-based HDD. It either won't work at all, or will be an awful experience...)