Hello All.
I have an additional solution that might help a few, if your situation is like mine.
I recently updated my 2018 MacMini 8.1 to Monterey about a month ago.
I have 2 extender hubs attached to the standard 2 USB ports, monitors attached thru the usb-c ports.
In the extender hubs I have several devices, and usually plug in 2 - 4 usb drives at any given time as needed.
My external USB devices could be seen and appear on the desktop since then and all was fine.
Today I plug in one of my usb drives and its a no show. I try a different port on the hub, no luck. I try a different USB device, same. I restarted, ran utility, etc... all the standards. Nothing.
Frustrated, I disconnected all the devices AND the hubs themselves and plugged everything back in.... BOOM! Everything shows up.
Wanting to verify what happened, I unplugged the hubs and restarted.
The startup was quicker and, on a separate issue I've been having and hearing about, Bluetooth started immediately and was not slow to initialize like it had been, so my mouse and trackpad were immediately available.
I plugged the hubs in with my external usb drives connected and they came up onto the desktop, no problem.
Conclusion: to me, the issue seems to be in the number of devices connected, especially if running Monterey on an older Mac like mine that does not have the M1 chip.
I'm hoping I don't have to unplug/replug all the time, but at least I know where to start with a solution.
Hope this helps.