Airpods Max Error with Apple Apps in Monterey 12.2.1 (MBP 16" M1 Pro)

I had been using my AirPods Max without issue in my Macbook Pro 16" M1Pro without issue until I updated to Monterey 12.2.1.

My Airpods Max connect without issue to the mac but ever since updating to 12.2.1 I cannot use the Airpods Max with the following apple apps: Safari, Music, AppleTV App.

The issue: Whenever the AirPods are selected as the output device and I press play either to a song in Apple Music, a video on AppleTV+ or whichever multimedia file in Safari, the file starts playing but after 2 seconds it stops, then if you try to play it again it stops and the icon on the menu bar referring to the output device starts flickering between the AirPods and the regular output, as if it was confused which one to use.

Using Firefox (no error): I made a test trying to watch youtube on Firefox instead and I got no errors. Thus indicating that this is an error triggered by Apple apps.

Another test I did to try my hypothesis was to have one window of Firefox open and one window of safari open. I played a video on youtube on Firefox (active window), and as soon as a click on the Safari window, no to do anything but just clicking on the window to make it active, the error occurred and the video that was playing on Firefox stopped.

This is clearly very frustrating as I don't really use Firefox and obviously I cannot use the AirPods with the main media content apps.

Similar experience anyone?

Note: I have the most recent AirPods Firmware 4C165 and I have no issues with neither my iPad, iPhone nor Apple TV, only with the apps I mentioned on Mac OS Monterey 12.2.1 running on an MBP 16" M1Pro