There are several threads on this problem. This seems to be the latest, but I have one observation to make that I have not seen elsewhere which leads me to think that the trust permission allows the M1 Mac to do something unfortunate with the App store on the iPhone, rather than the apps themselves.
I noticed when my M1 MB Pro (11.1) and an iPhone XS (14.3) went through the trust process for the first time when I was syncing music, the App store stopped working properly. The offered updates to some apps commenced, seemed to complete then was reset as available. This was stuck in a cycle. Those apps that had finished updating would not launch. Apps which had not been updated continued to work normally.
This only happened after permission was granted for the phone and M1 Mac to trust each other. Prior to that moment the App store on the phone was working perfectly, happily offering and completing updates to apps that were perfectly well behaved after being updated.
My conclusion was that the M1 Mac was interfering with the App store app on the iPhone which in turn was corrupting the apps it was working with.
I erased and restored the phone from an iCloud backup and added the music content from the Music library which I had copied over to an Intel Mac to sync it to the iPhone. The XS had no contact with the M1 Mac. When all this was completed the phone was working perfectly again; the apps which had failed to launch were launching and usable.
Other posters have commented that Apple is working on this problem but for now the XS isn't going near the M1 Mac.