Yes, and it's perfectly fine. You have a quiet machine that is not thermally constrained. This fan solution was powerful enough to cool the i5 (about 60 watts max. power draw) sufficiently in the sense that you would rarely hear the fan spin up beyond the inaudible baseline. And now it is cooling the M1, which even at full tilt draws significantly less. Don't worry a second about the fan running at baseline speed.Any updates on this issue?
I've observed the same thing on my new M1 Mac Mini: the fan is running all the time as soon as the machine is powered up but noise level is almost inaudible. You can tell the fan is running because there is a constant very light airflow leaving the air intake at the back of the mini.
So this is the expected behavior? Or did a receive a faulty unit?
Basically what you are getting is the fastest M1 setup possible: it will be faster under sustained loads than the M1 Air and it will be quieter than the M1 Pro.