My Mac mini was running Sierra. It had FileVault enabled. I read that you shouldn't be able to erase a FileVault encrypted drive. I logged into Recovery and I was able to erase the drive.
The next step I did was "Restore" and now I see a OSX Base System partition created. So, I thought heck, macOS would be installed and I restarted but I led me to Recovery Menu again, so I went to the reinstall macOS. But, when I select the hard drive, it shows the "This disk is locked".
So, I read that if you go to file menu in Disk Utility there should be an unlock option, but I don't see any.
Further in Disk Utility, it shows that the OS X Base System has consumed all the space.
I obviously know the password, how do I recover from this?