A fresh install but error messages after restore from backup

I have running RPI3 with the Home Assistant OS via SD card.

I tried upgrading my RPI3 to 2024.6 but I was experiencing issues so I found a way to use the other boot slot to boot an earlier version, I think 2024.4. However, I’ve been experiencing issues where HA would just restart every so often (multiple times a day).

I decided to take a full system backup and burn a new HA OS image following the installation guide. I let the system boot, gave it its 20 minutes of doing the setup and then was prompted in the UI at homeassistant.local to restore from a backup.

Tried restoring from a backup, though after a while the home assistant interface came back to the same new install onboarding screen asking whether to create a new system or restore.

I looked at the terminal output and saw the following:

Would you say the SD card is damaged, or is it a problem with HA due to a faulty backup perhaps?