M1 chip I have no direct knowledge, but our five Intel Macs use the T7s as standby systems. The three iMacs are by direct installation of 12.0.1 and the two MacBook Pros are CCC 6 bootable clones that do in fact boot.
Just a WAG, but I be surprised if it's the M1 chip. More likely there's a flaw, in the OS installation which by itself is a little odd it being an obviously new device.
Maybe restart in Safe Mode and let it churn for 10-15 minutes and see if that helps. Then there are the resets to cover all the bases.
https://rapidrepair.in/blog/reset-m1-mac-smc-nvram-pram/
My T7s came with cables. I found by accident that all performed considerably better with the cable supplied with the units.