Surface devices use UEFI, not the older legacy BIOS. So, ensure the USB is formatted as FAT32, GPT partition scheme for UEFI.
Try creating bootable Media Creation Tool on another PC and retry.
https://www.microsoft.com/en-us/software-download/windows11
To boot from a USB drive on your Surface, turn it off completely, then hold the Volume Down button while pressing Power. Keep holding Volume Down until the Surface logo appears.
You may download a recovery image specific to your Surface model on another PC using another USB drive (16GB+) formatted as FAT 32. Select Surface Laptop 7 and proceed accordingly.
Boot from a Windows 11 USB or Surface Recovery USB.
On the first setup screen, click Repair your computer → Troubleshoot → Advanced options → Command Prompt.
bootrec /scanos
bootrec /rebuildbcd
bootrec /fixmbr
bootrec /fixboot
If bootrec /fixboot gives an “Access Denied” error, you may need to run:
bootsect /nt60 SYS /force /mbr
Microsoft references:
Creating and using a USB recovery drive for Surface
Surface Recovery Image Download