I've gone into this a little bit in
#851, unless the logs gives you a specific hint (which typically isn't the case with watchdog kernel panics) it's pretty much trial error.
First step, as I've seen this to be the most common, is peripherals. Either unplug one peripheral after another, or possibly everything at once (displays, drives, etc.), if you're on a desktop, try another connection for your display, if you're on a MacBook, try using it with just the external screen. The issue can be triggered by just about anything (possibly even something like a keyboard, especially if it has a USB hub).
If the issue still occurs with no peripherals at all move on to software. First look at the ones that require kernel extensions (uninstall the application as well as their kext) like VMware, Parallels, Fuse, etc.
Then move on to "regular" software (keep those little helpers in mind that just run in the background as well).
If all else fails, format and clean install your Mac, do not restore from backup, do not install 3rd party software, use your Mac and see if the issue persists. If it does, you might actually be facing a hardware issue, but these are fairly uncommon with watchdog-KPs.
If the problem is gone, slowly start re-adding peripherals/software to your system to find the culprit.
I realise this is a painstaking process, especially if you depend on your Mac for work and don't have a 2nd machine, but if all else fails, you'll probably need to move through these steps if you want the issue resolved for good.
Also - if you're not up-to-date on macOS, update first (I haven't had any customers facing the issue since Big Sur 11.1)