Mac mini M1 bluetooth connectivity issues

I have the Mac mini M1 with the magic mouse, magic keyboard and trackpad connected and after a while of use the bluetooth module seems to struggle. The connection seems to cut out for very short intervals and 'catches up' all of a sudden. This only happens after a while of use.

I read a few articles where people were struggling with connecting to the M1 Macs with bluetooth but it seems like apple released a software update to fix it. However, this problem still hasn't been fixed, I have the latest software downloaded.

I have reset the bluetooth module and deleted the bluetooth plist. However, these have only been short term solutions.

It almost makes the mouse unusable and I am starting to regret buying it.

Is there another fix for this problem or is it a hardware issue?

Thank you.