Okay. If you still experience difficulties, restarting into Safe Mode will free up the system to unnecessary background processes and might be able to get you over the hump. Good luck.
After the error trying to boot from external and booting normally from interal right after, I was given the option to report the instance to Apple for more details. This is what it said:
panic(cpu 2 caller 0xffffff801ef7e99f): userspace watchdog timeout: no successful checkins from opendirectoryd since load
service returned not alive with context : is_alive_func returned unhealthy : opendirectoryd initialization not completed, current stage: opening /Local/Default node (code: 0x6
service: logd, total successful checkins since load (120 seconds ago): 13, last successful checkin: 0 seconds ago
service: opendirectoryd, no successful checkins since load (120 seconds ago)
Panicked task 0xffffff8b6396b3b0: 4 threads: pid 43: watchdogd
Backtrace (CPU 2), panicked thread: 0xffffff99c99b6000, Frame : Return Address
0xffffffb0577cb690 : 0xffffff801ba7af4d
0xffffffb0577cb6e0 : 0xffffff801bbddc06
0xffffffb0577cb720 : 0xffffff801bbccf73
0xffffffb0577cb770 : 0xffffff801ba1aa70
0xffffffb0577cb790 : 0xffffff801ba7b31d
0xffffffb0577cb8b0 : 0xffffff801ba7aad6
0xffffffb0577cb910 : 0xffffff801c3147f3
0xffffffb0577cba00 : 0xffffff801ef7e99f
0xffffffb0577cba10 : 0xffffff801ef7e5f2
0xffffffb0577cba30 : 0xffffff801ef7d971
0xffffffb0577cbb60 : 0xffffff801c282f2c
0xffffffb0577cbcc0 : 0xffffff801bb838c6
0xffffffb0577cbdd0 : 0xffffff801ba55a5b
0xffffffb0577cbe60 : 0xffffff801ba6c389
0xffffffb0577cbef0 : 0xffffff801bbafbda
0xffffffb0577cbfa0 : 0xffffff801ba1b256
Kernel Extensions in backtrace:
com.apple.driver.watchdog(1.0)[B17DE713-4E6F-334C-8414-BC2AF048195C]@0xffffff801ef7c000->0xffffff801ef7efff
Process name corresponding to current thread (0xffffff99c99b6000): watchdogd
Mac OS version:
21G816
Kernel version:
Darwin Kernel Version 21.6.0: Fri Sep 15 16:17:23 PDT 2023; root:xnu-8020.240.18.703.5~1/RELEASE_X86_64
Kernel UUID: E2CFB82A-F829-3647-9B0F-4C451F6E7B05
KernelCache slide: 0x000000001b800000
KernelCache base: 0xffffff801ba00000
Kernel slide: 0x000000001b810000
Kernel text base: 0xffffff801ba10000
__HIB text base: 0xffffff801b900000
System model name: MacBookAir7,2 (Mac-937CB26E2E02BB01)
System shutdown begun: NO
Panic diags file available: NO (0xe00002bc)
Hibernation exit count: 0
System uptime in nanoseconds: 149056360447
Last Sleep: absolute base_tsc base_nano
Uptime : 0x00000022b473b447
Sleep : 0x0000000000000000 0x0000000000000000 0x0000000000000000
Wake : 0x0000000000000000 0x0000000a0319a266 0x0000000000000000
Compressor Info: 0% of compressed pages limit (OK) and 0% of segments limit (OK) with 0 swapfiles and OK swap space
Zone info:
Zone map: 0xffffff80303a5000 - 0xffffffa0303a5000
. PGZ : 0xffffff80303a5000 - 0xffffff80313a6000
. VM : 0xffffff80313a6000 - 0xffffff84fde0c000
. RO : 0xffffff84fde0c000 - 0xffffff86976d8000
. GEN0 : 0xffffff86976d8000 - 0xffffff8b6413e000
. GEN1 : 0xffffff8b6413e000 - 0xffffff9030ba4000
. GEN2 : 0xffffff9030ba4000 - 0xffffff94fd60a000
. GEN3 : 0xffffff94fd60a000 - 0xffffff99ca071000
. DATA : 0xffffff99ca071000 - 0xffffffa0303a5000
Metadata: 0xffffffb0345f5000 - 0xffffffb0545f5000
Bitmaps : 0xffffffb0545f5000 - 0xffffffb0575f5000
last started kext at 4598753485: >usb.IOUSBHostHIDDevice 1.2 (addr 0xffffff801ec23000, size 40960)
loaded kexts:
>!UCardReader 533.120.2
|SCSITaskUserClient 456.140.3
>!AFileSystemDriver 3.0.1
@filesystems.tmpfs 1
@filesystems.lifs 1
@filesystems.hfs.kext 583.100.10
@BootCache 40
@!AFSCompression.!AFSCompressionTypeZlib 1.0.0
@!AFSCompression.!AFSCompressionTypeDataless 1.0.0d1
>!ATopCaseHIDEventDriver 5450.8
@filesystems.apfs 1934.141.2
>AirPort.BrcmNIC 1400.1.1
>!AAHCIPort 351.100.4
@private.KextAudit 1.0
>!ASmartBatteryManager 161.0.0
>!ARTC 2.0.1
>!AACPIButtons 6.1
>!AHPET 1.8
>!ASMBIOS 2.1
>!AACPIEC 6.1
>!AAPIC 1.7
@!ASystemPolicy 2.0.0
@nke.applicationfirewall 402
|IOKitRegistryCompatibility 1
|EndpointSecurity 1
@Dont_Steal_Mac_OS_X 7.0.0
@kec.!AEncryptedArchive 1
>usb.IOUSBHostHIDDevice 1.2
>usb.!UHub 1.2
>usb.cdc 5.0.0
>usb.networking 5.0.0
>usb.!UHostCompositeDevice 1.2
>!ABSDKextStarter 3
>!AThunderboltPCIDownAdapter 4.1.1
|IOSurface 302.15
>!AThunderboltDPInAdapter 8.5.1
>!AThunderboltDPAdapter!F 8.5.1
@filesystems.hfs.encodings.kext 1
>!AMultitouchDriver 5460.1
>!AInputDeviceSupport 5460.1
>!AHS!BDriver 5450.8
>IO!BHIDDriver 9.0.0
>!AHIDKeyboard 228.2
>!AHSSPIHIDDriver 63
>!AXsanScheme 3
|IOAHCIBlock!S 333.140.2
>!AThunderboltNHI 7.2.81
|IOThunderbolt!F 9.3.3
|IO80211!FLegacy 1200.12.2b1
|IOSkywalk!F 1.0
>mDNSOffloadUserClient 1.0.1b8
>corecapture 1.0.4
|IOAHCI!F 297
>!AHSSPISupport 63
>usb.!UHostPacketFilter 1.0
|IOUSB!F 900.4.2
>!A!ILpssSpi!C 3.0.60
>!A!ILpssI2C 3.0.60
>!A!ILpssGspi 3.0.60
>!A!ILpssDmac 3.0.60
>usb.!UXHCIPCI 1.2
>usb.!UXHCI 1.2
>!AEFINVRAM 2.1
>!AEFIRuntime 2.1
|IOSMBus!F 1.1
|IOHID!F 2.0.0
|IOTimeSync!F 1040.3
|IONetworking!F 3.4
>DiskImages 493.0.0
|IO!B!F 9.0.0
|IOReport!F 47
$quarantine 4
$sandbox 300.0
@kext.!AMatch 1.0.0d1
|CoreAnalytics!F 1
>!ASSE 1.0
>!AKeyStore 2
>!UTDM 533.120.2
|IOUSBMass!SDriver 210.120.3
|IOSCSIBlockCommandsDevice 456.140.3
|IO!S!F 2.1
|IOSCSIArchitectureModel!F 456.140.3
>!AMobileFileIntegrity 1.0.5
$!AImage4 4.2.0
@kext.CoreTrust 1
>!AFDEKeyStore 28.30
>!AEffaceable!S 1.0
>!ACredentialManager 1.0
>KernelRelayHost 1
|IOUSBHost!F 1.2
>!UHostMergeProperties 1.2
>usb.!UCommon 1.0
>!ABusPower!C 1.0
>!ASEPManager 1.0.1
>IOSlaveProcessor 1
>!AACPIPlatform 6.1
>!ASMC 3.1.9
|IOPCI!F 2.9
|IOACPI!F 1.4
>watchdog 1
@kec.pthread 1
@kec.Libm 1
@kec.corecrypto 12.0
Does that give any indication why it won't boot from the external drive? Is there another way to check if my internal drive is the problem? Thanks