After updating my Intel MBP to macOS 12.5, I got locked out. When trying to reset the password in the recovery mode (power+cmd+r), USB tethering to my iPhone did not work and I had to use my iPhone as a hotspot through Wi-Fi. Then I was able to set a new password using my Apple ID.
I am now wondering if Apple silicon MBPs can use USB tethering in the recovery mode.