Problem Solved!
As can be seen above, setup was failing because it was running out of space during setup.
There is an issue with the way that both the Raspberry Pi Imager and Balena Etcher put the Volumio image on an SD Card when running the linux version of these programs. This weekend I borrowed a Windows machine and using Balena Etcher for Windows everything worked great.
Since I’ve never encountered other pi images that fail in this way using Balena Etcher for linux, the bug could possibly be solved by modifying the Volumio image. There clearly is an inconsistency between the linux and windows versions of these programs which too might be considered a bug.