All new Apple M1 Mac computers, Macbook Air, Macbook Pro and Mac Mini come equipped with Apple T2 security chip that prevent users to perform hard reset when they are offline. This is a move away from Windows and Intel powered Macbooks and Mac Mini computers that can be resetted while the device is offline.
So, no matter what is your reason for resetting your M1 Macbook Air, M1 Macbook Pro or M1 Mac Mini, you will not be able to reset due to the Apple T2 security chip. This chip cannot be replaced or repaired. It is unique to every single device. This is also the reason why you cannot use a third party screen and keep face ID activated on an Apple iPhone.
The reason is that every single hardware is paired to Apple ID which is required for Apple to unpair in case you’re hard resetting the device.
This also means that if one wants to use the Apple M1 powered Macs for isolated network connection, you won’t be able to do so. This is an issue for enterprise users.
Also, if a particular country blocks Apple servers, users will probably never be able to reset their Mac computers.