I think the word "used" is an unfortunate choice of words with respect to RAM, because people think "used" equals "used up."
That is true in the general case, but here we have machines showing memory pressure warnings in Activity Monitor and even giving popup alerts about memory exhaustion which indicates a very serious condition for the kernel.
This is not the behaviour of a computer which is using otherwise-free memory for cacheing. This is the behaviour of a computer that is at the cusp of completely failing to be able to serve any further user requests at all because of critical resource exhaustion - yet the resource in question is the maximum available for the hardware platform, in a brand new computer that's only just come onto the market, where the problematic resource is not in any way user upgradeable, and where the user isn't doing anything that seems to constitute high load in 2021 (just browsing the web!).
Please see post above to compare the screenshots people have given for their struggling M1 computers, to a 2019 Intel 16GB Macbook Pro.
Well that definitely makes me feel a little bit better about the high RAM usage, I hope that's the case with the 16GB iMacs that the machine is basically trying to utilize unused RAM for more efficient performance instead that it is running out of RAM.
Unfortunately, the reported error alerts and Activity Monitor screenshots from M1-based computer owners in this thread show that they are most definitely running out of RAM.