M1 Max with 32GB RAM and 32 Core GPU hanging with FCPX 10.6.1

I upgraded from an M1 MacBook Pro from 2020 to this new laptop. I do not have other bloat software like cleanmymac or anything other than standard apple provided. No chrome installed either.

I have a simple single layer 7 mins project with mostly iPhone 13 files and some a7r4 standard 4k files. Render does not happen, and even clicking on a library or even moving around gives beach balls all the time that I had to force quit and send the report to apple. Also when render is running CPU goes above 100% and GPU is not used a lot. I thought most functions in fcpx uses gpu rather than cpu. I have done 30 min long 4K footage with my basic m1 with no issue. Very frustrated as I cannot complete a simple project that is due next week. Any help is appreciated.