Having the same issue also.
I've tested and made very sure the problem was with the Mac M1 Mini itself and not the USB-C to DP cable I'm using, nor the C49RG9 either. This test in MacOS Big Sur 11.1.
Here's the test setup I used to demonstrate that the problem is indeed with the Mac M1 Mini:
Toshiba Tecra laptop (Core i5 8th gen, borrowed from the office mind you...), and this USB-C to DP cable ->
https://www.amazon.ca/gp/product/B00VI3OKL8/ref=ppx_yo_dt_b_asin_title_o02_s01?ie=UTF8&psc=1
This little laptop doesn't have the slightest problem driving the C49RG9 at full 5120x1440 @ 120 Hz, albeit no HDR, simultaneously with its own LED LCD. I tried each of the C49RG9's DP inputs, both with the same beautiful results. Ok, so, the cable works as does the C49RG9. Back then to the M1 Mini.
With a single USB-C to DP connection alone, no amount of rebooting the M1 Mini will ever make an image appear on the C49RG9 (don't know if a signal is even being sent to the display or if the display and the Mini are just failing to negotiate?). But, BUT, with both the HDMI and USB-C to DP cables connected, rebooting the Mini yields two distinct displays in system preferences. Unfortunately, neither one of them can be set (scaled) to full resolution. Both remain limited to 3840x1080 at whichever frequency (60, 100, 120 Hz).
Then I tried something: with both cables still connected, I went ahead and disconnected the HDMI cable, leaving only the USB-C to DP cable connected. Lo and behold, I still had an image on the C49RG9!!! Oh, that's strange... Well, at least it proves the Mini's USB-C ports work, sort of (tried this stratagem with both ports), as does the cable, but something is definitely awry with the M1 hardware or drivers. Unfortunately again, even with only the USB-C to DP cable now connected, resolution still maxed out at 3840x1080, whichever frequency.
With these results in hand, I called Apple and opened a case file. Apparently it is a known problem but the advisor - actually the advisor's supervisor - couldn't confirm if a fix was in the pipeline nor a timeline.