Forgot Admin Password - Stuck on Activate Mac (Admin) - Apple Silicon M2

An employee at our business forgot his password on his Mac... He is the Admin User on the machine. We tried using resetpassword in recovery utility. It's a MacBook Pro M2 After restarting the Mac, I am presented with "Activate Mac" - "select a user you know the password for", NOT ACTIVATION LOCK, it asks for that user Admin Password. The problem is that the password I set doesn't work... Every time the Mac boots or try to go in recovery mode it asks for the Admin Password. FileVault is disabled and no disk encryption is setup. Is there still a way to recover the files on the computer? Thanks