Okay, I managed to resolve the "waiting for device" issue with fastboot. As I mentioned earlier, I'm using a Debian virtual machine in VirtualBox.
Therefore, I needed to connect not only the Silicon Labs CP2102 USB to UART Bridge Controller but also the "Lab126 USB download gadget" once I entered fastboot mode through the serial console. It turns out that the fastboot was waiting for this device.
Now, I'm able to communicate with the PW4 in fastboot mode

. However, some commands like "./fastboot setvar bootmode diags" are not working

.
I'm continuing to read and search for solutions in the forum

.
I hope this information is helpful for other beginners like me who are dealing with a locked 10th generation Paperwhite.
Do you have any advice on how to proceed from here?
Thank you,