Hello,
Exact same hardware here, M1 MBP and a Asus GT-AX11000 router. I'd constantly be getting issues where data flow would just stop. The MBP would stay connected to Wi-Fi but, the throughput would just die a death. So I had to turn Wi-Fi on and off again to get it going again. I tried turning Wi-Fi AX off, setting manual channels and all sorts to no avail.
Every other device in the house including, hue lights, sky tv, the telly itself, , an Apple TV 4K, Alexa, 3 games consoles, my work laptop and several iPhones were absolutely perfect. Just the MBP with issues.
Thought I'd finally fixed it by assigning a static IP address to the MBP and all seemed good over Xmas. Though all I was doing was browsing the web and light tasks like that.
However, this morning, thanks to Native Instruments finally releasing a Traktor beta which runs on the M1, I attempted to download my iTunes library from the cloud to the MBP and unfortunately, the issue was back with vengeance. I have several thousand songs in my library and every few songs, the throughput would just die again. I reset Wifi about 10 times before I became sick of the issue and started looking at both MBP and router settings. It would have taken me ages to just sit there constantly turning Wi-Fi on and off again every few songs to get my library.
I did wonder if it was to do with Wi-Fi channel width and started having a play, and I found something quite interesting!
Setting the 5Ghz 1 and 2 radios to use the 20/40/80/160 Mhz option (it defaults to 20/40/80) seems to have completely cured my Wi-Fi issues. The MBP pro is still only connecting on the 80Mhz channel width but it's ultra stable at 1200 Mbps. The throughput drops have now gone. It's almost like the MBP Wi-Fi speed was causing the router to hit some sort of rate limit at the 80mhz setting and give up, but setting it to the highest option gave it more headroom.
Thankfully, once done, I was able to download my entire iTunes library without a single further rate drop.
Try it yourself, see if it works for you. Do remember though, that it may cause issues with other devices on your network which don't like that setting. Thankfully all my other devices are quite happy to play along with it set on.
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