Answer found on https://discussions.apple.com/thread/251177226
Option-Command-R was a solution, which started different Recovery image for Monterey version (proceeding successfully), while Command-R was attempting to install Sierra (and failing with "The recovery server could not be contacted").
If macOS Sierra 10.12.4 or later was never installed on your Mac, macOS Recovery works differently:
- Command-R is still the recommended way to start up from macOS Recovery. This combination makes sure that the installation isn't associated with your Apple ID, which is important if you're selling or giving away your Mac.
- Option-Command-R installs the macOS that came with your Mac, or the closest version still available.
- Shift-Option-Command-R isn't available.
P.S. Below are lists of OS<>laptop model compatibility, thanks to @DavidAnderson for comment