Cannot use HA or recover anything: System is not ready with state: setup

A bit desperate - especially as not familiar at all with OS / Linux and completely stuck
Home Assistant “standard” OS install on Synology Virtual Machine, with supervisor.
I noticed a strange behavior after I attempted last update of Core to 4.6 (udpate pending forever), so I did full snapshot and restarted the VM.
Now… HA OS does not boot anymore!! When I login to the VM with root I get the message “System Information panic: runtime error: invalid memory or nil pointer dereference”.

I get the prompt… but anything I try (core check, core restart, etc) I only get the message “System is not ready with state: setup”. And nothing happens

I’m trying to understand how I can either fix the situation - or at least recover my snapshopts. I’t hate losing EVERYTHING… a couple of months of work frankly…

Any clue? I understand I can do login from that prompt and get to the “real os” - but I’ve no clue what I can do from there. Where are the snapshots or relevant files? How can I download something? I don’t even know which commands are available…

Thanks