Doesn't work for me either:
Mottis-mini-M1-mac:target $ sudo softwareupdate -i -a -R
Software Update Tool
Finding available software
No updates are available.
Mottis-mini-M1-mac:target $ softwareupdate --list-full-installers
Finding available software
Software Update found the following full installers:
* Title: macOS Monterey, Version: 12.1, Size: 12157035487K, Build: 21C52
* Title: macOS Monterey, Version: 12.0.1, Size: 12128428704K, Build: 21A559
* Title: macOS Big Sur, Version: 11.6.2, Size: 12433351292K, Build: 20G314
* Title: macOS Big Sur, Version: 11.6.1, Size: 12428472512K, Build: 20G224
* Title: macOS Big Sur, Version: 11.6, Size: 12428553042K, Build: 20G165
* Title: macOS Big Sur, Version: 11.5.2, Size: 12440916552K, Build: 20G95
Mottis-mini-M1-mac:target $ softwareupdate --fetch-full-installer --full-installer-version 12.1
Scanning for 12.1 installer
Install failed with error: Installation failed
So what's next? I do not wish to reinstall the OS now -- both it takes ages to download and install, and I'm not sure it'll cure the problem. This is my development work Mac...