Why does the M1 chip not allow for 2 or more external monitors? I'm afraid I just wasted several thousand dollars.

I did the same. And then I returned it immediately and bought the iMac with Intel processor.

Transitioning from Windows to Apple has been quite interesting. And I don't regret it so far.

-Woodburyguy

[Link Edited by Moderator]

I can’t answer technically why the M1 iMac is limited to one external display but I’m speculating that Apple regards the current M1 iMacs (with their colour options) as being home computers for domestic uses. Next year we will likely be seeing Pro versions of the silicon iMacs with a 27in display, I would hope that the hardware designers include the ability to connect more than one external display. We wait and see.

That fact is clearly stated in the details of the M1s ... One external monitor.

However, if you search the web you'll find instances of more than a single external monitor being successfully set up.

I can't answer the "why" question but if you purchased directly from Apple after November 1, be aware that the holiday return policy is in effect: https://www.apple.com/shop/help/returns_refund