Happened to me for the first time yesterday. Have had my M1 MacBook Air for just over six months. Have an external LG monitor + Seagate back-up drive attached (since day 1) and added an Satechi external hub a few months ago. So far has only happened the once for me - came up with a green screen, then restarted and I got the AP watchdog expired message (see log entry below).
Panic (system crashes) log:
Source: /Library/Logs/DiagnosticReports/.contents.panic
Size: 247 bytes
Last Modified: 29/6/21, 10:46 am
Recent Contents: {"files_to_attach":["\/Library\/Logs\/DiagnosticReports\/panic-base-2021-06-29-104613.000.panic"],"log_path":"\/Library\/Logs\/DiagnosticReports\/panic-base-2021-06-29-104613.000.panic","panic_string":"SOCD report detected: (AP watchdog expired)"}
One thing I've wondered reading this thread and another (https://discussions.apple.com/thread/252511597?answerId=255469239022&login=true&page=1), is whether it is only happening to Macs with M1 chips? Haven't seen anyone who has posted yet talking about the problem with older Macs.
Also, I am powering via my external monitor with a USB cable. It regularly seems to lose connection and I have to pull the cable out and put back in to get the laptop to charge. So maybe a USB cable connection or some sort of power related issue?