I previously had a problem with USB-C thunderbolt connection to my LG 5k2k display. On wake, it fall to a 3k1k resolution, and the only way to fix it was to turn off/on the monitor. The 11.1 appeared to have fixed it. My m1 mini still refuses to connect to the monitor with DisplayPort 1.4 though.
Someone from Apple Engineering team called me today and we captured some logs together. We also ran an app called TimingSnoop that captures DisplayPort connection tech data. I hope they will be able to fix it in future release. If you haven't already, you should raise a ticket with AppleCare too. It will help them fix the problem.