Connecting to the Mac Mini M1

There is no way to use two Thunderbolt displays with the M1 Mac mini. To use two displays on the M1 Mac mini, one must use the HDMI port, and there is no way to run a Thunderbolt display from HDMI.

Mac mini (M1, 2020) - Technical specifications

"Simultaneously supports up to two displays:

One display with up to 6K resolution at 60Hz connected via Thunderbolt and one display with up to 4K resolution at 60Hz connected via HDMI 2.0"

It's not because of the Thunderbolt 2 to 3 adapter. It's just that the M1 Macs do not support more than one Thunderbolt display. For example the LG UltraFine 4K Display

LG UltraFine 4K Display - Apple

has two Thunderbolt 3 ports and you can daisy-chain two from one Thunderbolt 3 port on a 2018 Intel Mac min with no adapters, but you can connect only one to a M1 Mac mini.

It's a limitation of the M1 chip. It can support two displays but has only enough circuitry to format one video stream to work on a shared USB/Thunderbolt bus. Such a bus has to be able to handle multiple data formats simultaneously bidirectionally. The video has to be formatted into labelled data packets. The second video stream from a M1 chip is just raw video data which can be used for a builtin display on a MacBook, iPad Pro, or iMac or a Mac mini's HDMI port.

This is a regression from Intel Macs that can handle more than one Thunderbolt display, but the M1 is just the first of Apple's CPU/Graphics chips. It it not suiltible for replacing all Intel Macs, so Apple still sells non-M1 Macs. Buy one of those if you need two Thunderbolt displays, or wait for Apple to coime out with more chips.

The M1 Mini can support 2 simultaneous monitors - one from USB-C and the other is HDMI.

On the left with Apple TB3-2 adapter shows one monitor.

The right shows 2 adapter cables that converts HDMI into MiniDisplay Port.

Can't use both TB3 ports for 2 displays as they are both common controller.

So are you saying that the daisy chain option is not applicable for an Apple Thunderbolt 27" display when you use an apple thunderbolt 3to2 adapter?

I find this hard to believe? A regressive step when on all my Mac minis 2011-2014 I have absolutely no issue with 2x27" Thunderbolt displays as the second is daisy chained.

So, I just bought a Mac mini 2020 and my two display options are a 27" Dell with DVI cable and a LG 32" with HDMI...

I don't have an DVI adapter yet so for now I hooked up the LG using the HDMI port.

Neither of my monitors are 4K. Is it more advantageous to use the Thunderbolt port if you only use 1 monitor?

Also, if you use 2 monitors is one port better suited for the better monitor?

Leave the HDMI display connected directly to the HDMI port and get a USB-C to DVI adapter for the DVI display.