Yeah for 6 years I've run my home folder on my secondary drive. I've never been a fan of storing files on the same drive as the OS and apps. My preference is to always store files such as docs, music, photos, and any videos to an external or secondary drive. I was advised today that Apple is adding more security and having that home folder on a secondary, or in my case, external drive, may cause issues in the future. I did not like hearing that. Apple charges a hefty tax for GB's and for my use, I'm only going to run the OS and apps on the internal drive. File storage, of any kind, I want on another drive. Without moving that home folder to my external SSD, I'm at a loss on how to do what I want. This M1 is 250GB SSD and 16 GB of RAM. I have no need for additional hard drive space on the internal drive because I'm not going to store anything on it. So now I'm going to have to try and figure out how to use the OS and have it store documents, photos, Itunes library, all on my external drive without moving the home folder to the external SSD. Apple either wants you to buy GB/TB from them alone, and/or use iCloud. What got me to migrate to Apple in the first place was that quad core Mac Mini where I could add a 2nd hard drive, increase the RAM on my own, etc, which is exactly what I did, and it has worked outstanding. When I bought it, in 2014, I added a SSD (128Gb Crucial), and moved the OS over to it. Then used the Apple HDD for all file storage. Then I hooked up an external HDD to use as a time machine backup. Has worked very well. Now I must change and figure out how to do what I want, while dealing with Apple control.
Strangely enough I have always found that selecting the location other than the default Apple chosen works perfectly fine when you do it. I never store anything but text files in my home directory, all my browswers are set to download files to the Downloads directory on my secondary drive, my music and videos are stored on this as well. Works well with never a problem doing it.