Since you mentioned that you are using a local Windows account, could you please confirm what happens when you enter an incorrect password on the sign-in screen? Do you see a Reset password option, any security questions, or only a message indicating that the password is incorrect? Also, under Sign-in options, are there any alternative methods available, such as a PIN? Did you create this local account yourself during the initial Windows setup?
Additionally, when you accessed the Windows Recovery Environment, did you find the Troubleshoot > Reset this PC option, or were you only attempting System Restore? Please note that System Restore requires an existing restore point; you cannot manually select an arbitrary date. Since the laptop is brand new, do you have any personal files or applications that must be preserved, or would resetting Windows be acceptable?