I connected my 32" QHD screen to my 2018 Mini with a USB-C to displayport cable just to avoid these issues. But a few weeks ago, I decided that port could be put to better use with another external SSD, so I connected the monitor to the HDMI port. It works fine, but there's a one-pixel wide green line that runs the full length of the right side of the screen.
Not a big deal, I usually don't even notice it, but it just shows that the 2018 Mini HDMI issues were never really corrected. In one of the many threads on this topic, somebody said that the M1 Mini used the same HDMI controller as the 2018.
Wow, I'll consider myself lucky then as HDMI has worked fine for me on my base M1 Mini, 2015 MacBook Pro 13, M1 MacBook Air, and when I briefly had the base Mac Studio and M2 Pro Mini. At some point I've connected the aforementioned machines to a 24" BenQ monitor, Hisense 4K TV, Samsung HD TV, Vizio 4K TV, and Sony 4K TV. No issues at all with the picture or sleep (well, the Hisense is clipping highlights at 4K60 but fine at 4K30).
I don't doubt the issues you and
@gusping are experiencing, truly unfortunate, but I wonder what the underlying cause is. I figure if source/target and cables are all compliant with display protocols then it should all work. There shouldn't be a need to test a huge selection of monitors if the protocol standards are adhered to.
Edit: Just realized I don't encounter sleep issues because my Mac devices don't sleep. I specifically prevent sleep so I can remote into them. I have WakeOnLAN enabled for my WindowsPC because it's a power hog, but the Macs are so efficient that I've just left them on since the M1 transition. Display goes to sleep but not the hardrive/SSD. I don't recall any wake issues when I had my 2015-era Intel MBP connected to an external display and back then I did allow it to fully sleep.