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SU-101217-2 Error Code (Safe Mode Boot Loop)

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When pressing the power button once, PS5 will display the reinstall system file screen prompting to reinstall the system file from a USB. The reinstallion fails with the code "SU-101217-2" and displaying "Something went wrong." This is after the screen where the install and resetting defaults settings go to 100%.  It can boot into safe mode too with all options available. I have tried every option and combination of options with no luck. Trying to update instead of reinstalling, results in the same "SU-101217-2" error. What is the cause of this? There is no information online on the root cause.

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PlayStation 5

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open