Macbook Pro M1-17.1 and BigSur 11.2.3 wireless (as well as the ethernet/LAN) fail

Macbook Pro M1-17.1 and BigSur 11.2.3 wireless (as well as the ethernet/LAN) fail

Hi guys, have been using this new M1 laptop for a couple of weeks and suddenly all connections both wireless and LAN/ethernet dropped.

WIFI: Tried resetting, reinstalling system, removing system airport related files from Preferences, setting new wireless locations with automatic DHCP, DHCP+set IP, and also TCP/IP set manually with DNS (copied from my other MacBook computer), set to Google DNS and so on. Finally my router (where both 2.4 and 5g run with MacBook MAC ID passed and IP reserved for the MacBook) found and listed it in connected devices list but no internet was accessible on the Mac. The Mac also indicates being connected to the router with the correct IP - but there is no access to the internet through any of browsers (FF/Safari/Chrome). AirDrop does not work with bluetooth on (cannot find my other MacBook), no online connection despite both router and Mac claiming otherwise. 

After running wireless tool checkup it shows country conflict stating the router passes DE as country instead of PL. There are routers in the vicinity that do have DE country code, while my router is showing UE.

What seems even stranger is that I tried another physical location a few kilometers away and the internet did not work on the other-new router, so it clearly indicates Apple software BIGSUR 11.2.3 as source of conflict not my or other ISP. There is no connection with:

my phone hotspot - phone shows connection the Mac has no internet access

LAN adapter purchased for 50 USD equivalent and all setup was done manually, the router saw the Mac - and Mac confirmed active connection, no internet in Mozilla, Chrome, Safari, or system help popups.

bluetooth pairs but seems to have no use in the internet signal passing

Seems like Apple has an issue while all the other devices (2 iPhones, a MacBook, Asus, Amazon DOT and so on) work fine and have online access while the router passes correct country code (PL) to them. Question how do I change that country code in IOS? Why LAN and Hotspot do not work if the country code is wi-fi related?

Any ideas?