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Apple didn't make exfat driver working in recovery because the is no sense to use exfat during system recovery. System recovery should use only APFS drives, exfat can be used for data store, no more. If you have a system installer on exfat volume then copy it in a bootloader to APFS volume and then use in recovery.

Rant Number 1: Memory: I Have A 2008 24inch iMac That Comes With 2GB Memory, WTF Should Come With A Minimum Of 4GB With Each OS Release, The Machine Gets Slower And Slower UNTIL It Gets To The Point Of Being TOTALY UNUSABLE SHAME APPLE SHAME I'm Running Big Sur At The Moment Courtesy Of OCLP Slow Is An Under Statement Rant Number 2: HDD: My iMac Comes With A 7200RPM HDD Which Is Supposed To Make Up For The Measly Amount Of Ram Some Machines, i.e. Some Models Of MacBook Air Come With A 5400RPM HDD SLOW Should Come With A 7200RPM HDD SHAME APPLE SHAME Rant Number 3: The Dock: Ever Noticed When Minimising A Window, It Goes Into It's Icon On The Dock, (When You Have It Setup To Do So) When You Click The Icon It Maximises What If You Want To Minimise It Again, You Have To Drag Your Cursor All The Way Up To The Window Why NOT Just Click On The Icon In The Dock And It Maximises DUMB APPLE DUMB Rant Number 4: Safari: Ever Noticed That When You Want To Go Back A Page You Right Click And You Have To Drag Your Mouse ALL The Way Up To The Top. Why NOT Have The Back Button Appear Where The Pointer Is. DUMB APPLE DUMB Will Add To This As I Come Across Them.