I think I may have fixed the issue on my machine. It has been error free for around a month now and although other's experience may differ, here is what I did to fix mine.
- I took a look at Process Monitor and ordered by the 'kind' column. I have a Mac M1 so was interested in anything that was non-native - these would be the Intel based processes.
- I noticed a couple of apps that were Intel but from reputable places - Spotify, WhatsApp etc (I left these alone)
- I also noticed 1 app that although I had installed some time back, was no longer needed, in my case this was the Devolo wireless plug manager. They are great devices but I didn't remember agreeing to installing a daemon (service) as part of the app.
- I removed the Devolo app and service through it's uninstall process
- A reboot and check that no Devolo processes remained and (so far) no further issues !!
If anyone wants to try this, I'd suggest listing which apps / daemons you don't need / use and uninstall them - if you have the issue on an M1 then pay particular attention to the Intel based items. If you don't know what it is or don't recognise then I'd suggest leaving it there as it may be an important / needed service - only delete what you recognise and no longer need.
As a bit of background, I think I located the issue to an interference with the fsevents service as this is responsible for the UI dialogs that this issue effects, I was ready to dig deeper into this (after doing a bit of reading) but, fortunately don't seem to have the issue any more.