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I'm seeing this same error message when trying to use startosinstall on a macOS 12.0.1 system. The startosinstall doesn't do anything after this message. So, it's either related or something else is going wrong after it and therefore not being logged.
nvm ... it's Apple's settings they sneaked in for M1 Macs requiring a password for the install, despite being run by sudo (root). Having to put the password in a script is a step backwards indeed ...