Uninstall Insignia Adapter Drivers
It's likely your EFI partition is broken because the driver tried to make inappropriate changes to EFI.

On boot, Touch Bar attempts to boot its own OS from the EFI. If it can't boot correctly, EmbeddedOSInstallService will attempt to fix it so your Touch Bar can function again, by copying a ‘known good’ OS from:

/usr/standalone/firmware/iBridge1_1Customer.bundle
/Library/Updates/PreflightContainers


If there isn't a good OS here, Setup Assistant will ask you to connect to the internet so one can be downloaded and EFI repaired.

Make sure your internet connection is suitable per https://support.apple.com/kb/HT207567.