Yes, please upgrade. You are three updates behind the latest. Apple has been fixing many bugs. Here's my M1 Mac mini update history and Apple fixed many problems over all these updates:
❯ softwareupdate --history
Display Name Version Date
------------ ------- ----
macOS Big Sur 11.3 11.3 04/27/2021, 12:11:21
Pro Video Formats 2.2.1 04/27/2021, 13:38:28
Command Line Tools for Xcode 12.5 04/27/2021, 13:42:49
macOS Big Sur 11.3.1 11.3.1 05/03/2021, 18:15:52
macOS Big Sur 11.4 11.4 05/24/2021, 18:37:50
macOS Big Sur 11.5 11.5 07/21/2021, 18:16:32
macOS Big Sur 11.5.1 11.5.1 07/26/2021, 21:49:46
macOS Big Sur 11.5.2 11.5.2 08/12/2021, 01:13:38
macOS Big Sur 11.6 11.6 09/13/2021, 17:20:11
Safari 15.0 09/20/2021, 19:11:15
Pro Video Formats 2.2.2 10/19/2021, 08:51:41
macOS 12.0.1 12.0.1 10/25/2021, 23:18:39
Command Line Tools for Xcode 13.0 11/14/2021, 10:40:42
Command Line Tools beta 4 for Xcode 13.0 11/14/2021, 10:40:42
Command Line Tools for Xcode 13.1 11/14/2021, 10:40:42
Command Line Tools for Xcode 13.2 12/13/2021, 18:34:28
macOS Monterey 12.1 12.1 12/13/2021, 18:35:50
macOS Monterey 12.2 12.2 01/26/2022, 18:59:29
macOS Monterey 12.2.1 12.2.1 02/10/2022, 20:13:01