Setting the machine's interface to built-in may have made sense once upon a time, but it hasn't been the case for as long as I can remember, and I've actually never had to do it myself (and I've been using "Logic" since it was Notator).
Also, macOS isn't becoming "more like iOS" or "being converted" to the iOS platform. SwiftUI will eventually represent a merging of UI frameworks (sort of), but that's about it. In fact, particularly from an Audio/MIDI perspective, it's always been the other way around—iOS has always been fundamentally the same as macOS; both use CoreAudio, which is low-level C code from way back in the Mac OS X 10.0 days. Bit and sample rates are limitations on the hardware only (DACs), not the underlying system.
That said, it's true enough that a new processor can be expected to have some growing pains. But honestly I do think this has more to do with the OS (Monterey) than the hardware, since the problem isn't isolated to M1 Pro/Max machines, from what I've seen. Perhaps managing Rosetta is trickier on the newer processors(?)...
NOTE: I'm don't recall whether anyone here is using only Logic's built-in, native plugins, but it might be worth disabling all third-party stuff, just as a test. After all, just because a dev has ported their plugin to native doesn't mean the port is bullet proof—while some ports can be simple, that isn't always the case. I'm happy to use 10.6.2 for now, since it's running fine, but I'll certainly try more options if the problem arises again.