For everyone experiencing Wifi issues with M1 devices I've done more testing and am pretty sure I've narrowed down the problem, although I don't know if the problem is Apple Hardware or Software. Here's my situation. I have many Apple devices in my home as well as +20 other smart devices that access my wifi 24x7. All of those devices work fine, except for my M1 Apple Devices. Even my Apple devices that are not M1 work perfectly fine so the problem is with M1 Apple Devices.
My M1 devices are 1 MacBook Air, 1 Mac Mini and 1 iPad Pro. The 2 Mac's constantly drop Wifi connectivity throughout the day making them very frustrating to use and the iPad Pro drops connectivity occasionally (sometimes days between it happening). What happens is you can be browsing the web, watching a youtube video or the device can be doing a time machine backup and out of nowhere the Wifi signal drops. When in the browser you simply get a spinning wheel or the page won't reload and after a minute or two it'll say something like You no longer have internet connectivity. If in Youtube it'll take you to a reload page screen where clicking on the icon never gets it working. The only way to recover is to turn Wifi off and back on again, or reboot, or something you an put the device to sleep and wake it back up and it'll reconnect.
My home wifi is provided by Xfinity (Comcast) and they provide my router with is the new/latest Xfi router. After doing extensive testing what I've noticed is when these M1 devices (especially the Macs) are close to the router the acquire the 5Ghz network and lock onto an 80Mhz channel of spectrum. When they do this they constantly drop from Wifi. On a Mac the way to see wifi connection settings is by holding down the Option Key and clicking on the Wifi icon in the upper right part of the screen.
When I turn off the 5Ghz network so my M1 Macs only connect to the 2.4Ghz network the connection stays up and works fine. I came across a post from someone I believe on Redit that said the 5Ghz 80Mhz channel bandwidth is a known issue with these M1 Macs but I don't think it it cause I've had my M1 devices for months and there have been several software updates and Apple has done nothing to fix this. Assuming it can be fixed with Software.
In that same Reddit thread I mentioned, it said if you change your 5Ghz router settings to a Channel Bandwidth of less than 80 (options are typically 40/20 or just 20), they said that worked for them. Unfortunately for me Xfinity locks down the settings in the router where I can see the options to do this but they won't let me make the changes to test it. I called their support line and they did something to try and change that but the router still won't let me make changes.
If anyone else is having this problem and it's with a M1 Mac, do what I'm suggesting above to see what Wifi network your Mac is connected to when having this problem and post your settings here. If we can see that everyone having this issue is on 5Ghz 80 Channel Bandwidth, then I think it's pretty certain the M1 Macs have issues using those Wifi routers that offer this capability. BTW, for those who are not technical 5Ghz and 80 Channel Bandwidth offers much higher Wifi speeds for devices that can connect to it and have a high bandwidth internet provider plan. So for anyone that says, just use the 2.4 Ghz wifi my response to that is sure if you want a slow congested connection it's fine to use 2.4Ghz. But if you want to take advantage of the internet plan you're paying for from your ISP, you definitely want your Macs to work on the 5Ghz high channel bandwidth settings.
Here's a screenshot of what the Wifi connectivity options look like and what field of data let's you see which network (2.4 or 5Gzh) and the Channel Bandwidth your Mac is connected to.