This is definitely a problem. I had Lanscan installed. Today (5 times) I scanned the network. After listing the devices, the beachball appeared. Lanscan could not be force-quit. At this point the network was lost - connected servers dropped, web browsing dead. Could not reboot - had to force a hard shutdown.
After removing Lanscan, I resumed an online course. 6 times during a 2 hour period, the ethernet vanished. Again, local servers dropped, no browsing, no ping. Had to reboot to recover operation.
I never had this problem before the latest Monterey 12.3.1 update.
Apple has definitely broken something and it's making the machine almost unusable.
If it was a real computer, and not an appliance, I would just load up Fedora and be done with this nonsense but, as it is, I'm stuck with it. It's a MBP 2016 and it's pretty obvious why it is worth so little in trade on a newer model. Who would want something as afflicted as this.
It cam with Mojave but things reached a point where an upgrade was unavoidable. There is no way to revert to Mojave. They have done something to the Mojave installer that prevents it from running now - just says the installer app is damaged (or something like that).
Since this thread has been running for a long time how, and it's pretty clear that many are experiencing similar problems, the only constant factor is the fact that Mac Monterey is behind it all. It seems almost certain that it is the culprit.
I won't bother calling Apple Care (but that's another story for a different time)