Is it no longer possible to set a separate password by reformatting the disk in Recovery to one of the "Encrypted" options before (re-)installing to that volume?

That's how I set up multiple passwords for FDE on a recent hackintosh build, but I don't have an M1 and this wasn't Big Sur, so maybe I'm missing something obvious that has changed lately and I'm way off-base.

It had to manually be done in that order though, otherwise it defaulted to the user account password for FDE.