M1 works just fine. Adobe just ported his software to ARM architecture, that could be a way more probable source of problem since Apple knows ARM way better then Adobe as it helped create ARM and has been making devices and softwares based on it for more than a decade.
Well, not trying to make a stand for the company here, just trying to give you another point of view.
Have you reinstalled PS to check if it was not an issue with the installation?
Try restarting holding Shift to enter Safe Mode. Once up, restart normally and check again.
Maybe reinstallation of macOS could solve or reveal an issue as well.
I get you're disappointed, but lets first try to fix this. If it's impossible, we maybe find a problem with the Mac itself and, being it still under warranty, Apple will work its way to fix things for you.
I'm sure you'll end up happy and with a very good machine to help you do your best work.