I had the same issue in October 2021 on my M1 MacBook Pro while it was on Big Sur. I worked with the apple technician to run all troubleshooting/diagnostic tests, collecting logs, screen recordings while monitoring frequent wifi signal drops, continuous ping test showing failed responses and a ton of documentation over a 2 week, multiple calls triage.
Eventually, he escalated it and agreed to send me to genius bar with recommendation to get it repaired. They shipped it back with replacing the bar on the back over the air went which has the network adapter.
It worked fine for 4 months before the issue resurfaced last week 2/11/22 . Connected with apple support and they escalated immediately, added a code to wave out of warranty repair cost and agreed to send for repair. I received the device back on 2/18/22, yesterday.
This time they replaced the logic board (part# 605-07701) and Touch ID (part # 605-08116), restored the machine back to MacOS Big Sur. I updated it to latest version MacOS Monterey 12.2.1 yesterday
Today, 2/19/22, at 10:30 pm, the issue has resurfaced. I recorded the screen as the signal dropped 4 times in a matter of 6 minutes and the ping test corresponds to the time when it starts flickering and fails.
Per my research (along with apple support Rep), this is definitely a hardware issue, independent of OS versions or wifi router/networks, or specific time of the day.
Apple needs to identify the root cause of this issue ASAP or replace the device with a working device.