Same issue, brand new MacBook 14" M1 Pro.
Huge disappointment - after updating to Monterrey 12.3.1. nothing has changed. Just purchased a new MacBook few days ago - replacing it with a new piece does not make sense, because probably every single piece has such a failure (but not everybody knows it, since they do not use command+tap as multiple choice click - many just use Command + hard-click for a multiple selection, which works well and the problem does not show up in this scenario).
Seems to be a software issue, but not necessarily. Apple Support is not helpful in this regard (rebooting the system, relogging from goes account, booting the system in safe mode etc. - obviously nothing helps).
Yes - there is a workaround by holding the Command key for more than one second and then tapping-for-click for a multiple choice or pressing Command with a hard Touch Bar click - both work, but neither of these solutions is optimal from the usability point of view.
Apple - we are waiting for an URGENT fixing of this major bug! For most professionals such a disturbance in their workflow costs a lot of time everyday and and a lot of real money...