Is the Apple USB SuperDrive compatible with a iMac (24-inch,M1, 2021) with macOS Monterey (v 12.0.1)?

Yes, however you need to plug it directly into the iMac and it will need a USB adapter (available on Amazon for less than $10). Do not plug it into a USB Hub, it must be connected directly to the iMac.

+1 - The Apple USB SuperDrive - Apple is compatible, but you must also use an Apple USB-C to USB Adapter - Apple.

Jack

When you spoke to AppleCare what did they say? AppleCare contact Information

My brand new USB SuperDrive keeps giving message that says this computer can't read disc. It's plugged into the back of my computer in a USB port. A blank CD will show up- to burn something. but my CD's are all stored jpgs. and it doesn't want to read the disc. Even commercial picture discs don't read.