Just to be clear.
- Did you have a CD/DVD inserted in your SD when you tried to detect it? My SD doesn't show up on my desktop (or in my Finder sidebar) but the disk INSIDE the SD does.
- Are you sure that the inserted media is readable (i.e., formatted correctly, not a Windows disk)? I'd try inserting an audio CD or DVD movie in the SD, and see if your MBA detects it. If it sees those disks, then the problem is not with your SD or MBA. Or maybe try taking a look with Disk Utility.
I've never heard of Apple admitting that their SD doesn't work with the MBA. I bought my MBA last month, and had my SD for about 10 years. Just bought an adapter, and ran with it. It is an M1 machine, not an Intel.
FWIW, I've been told by the 'experts' that the M1 won't do this or that, and always found that (so far), it's just not true. Not from what I've heard, but from what I've actually done.