2016 MBP Sequoia Internet Recovery unusual recovery volumes. Need help.

Little bit of an abridged version on my question as I just lost my draft. But basically I updated 15" 2016 mbp from Monterey to Sequoia and it had been working fine for a few weeks. Save for the weird shut down thing after an hour or so of inactivity which seems to be a documented issue.

Last night I was downloading some photos and moving them into the Photos app. Not a huge ask of the computer. I get up to grab a beer and when I come back the computer was frozen.

I went to restart it and it wouldn't turn back on completely. It just gives me a purplish screen which tells me it is a vegetable, but not fully dead.

After trying to do a PRAM and a NVRAM reset to no avail, on two occasions now it has kind of randomly entered internet recovery on its own. Which I proceed to follow the steps until it brings me to the select a volume to recover. However, the options are unfamiliar to me and pictured above. The drives show up as Preboot, Recovery, VM and Update.

My questions are: - Which volume should I select and what are the differences? It looks like I can't find other instances of this happening online. - Why is the select a volume on the same tab of this reset a password? - Is the comp toast/if not toast would I have lost my files?

Thank you!