I have an M1 Mac mini connected to a LG 32UD99-W monitor with a USB-C cable. Sometimes the screen doesn't wake up from sleep. Recycling the monitor power gets the display back, but the USB ports on the monitor stop working and doesn't show up on the System Profile anymore. I have a Blue Yeti mic connected and it doesn't light up when this happen. Rebooting the Mac mini fix all the problem.
I think there is something different with the USB implementation on the M1 Mac. I also have an NVMe to USB-C enclosure that works intermittently with the M1 Mac while works perfectly with other Mac. I hope this got sorted out soon.