You only need to choose the partition with the name BOOT CAMP and hit the Format button. The next step is to format this partition for Windows.
Step 2: The Windows installer will launch when your Mac automatically reboots after the partition is created. This is a permanent setting so make sure you allocate adequate space. Plug in the USB if prompted Boot Camp will ask you for the space allocation, which you can provide per the above guideline. Step 1: Open Launchpad and select Boot Camp Assistant from Other folder. Once you're ready, please follow the steps shown below to install a copy of Windows 10 on macOS Big Sur with Boot Camp app.