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Reply to INCOMPATIBLE DISK error message upon launching Big Sur APFS vs MacOS Extended issue in Big Sur?
I had the same problem. I only deleted the volume from the disk (Macintosh HD), not the entire disk (APPLE SSD) and the same error appeared after I reinstalled macOS Catalina (before I had macOS Big Sur). I tried to erase the entire disk (APPLE SSD), APFS format and GUID partitioning. I then reinstalled macOS Catalina and the error did not appear. I used the steps from Apple in the link to delete the entire disk. https://support.apple.com/en-us/HT208496#erasevolume - "How to erase your disk"
Jul ’20