Genuine ThunderBolt and USB-C displays are seeing some "growing pains" with the new interface chips in recent M1 Macs. Most of the complaints are minor, and there is no talk that this or any particular display is somehow "not compatible" with these new M1 Mac systems.
There has never been any suggestion that fundamental display mechanisms are not working, or that colors were defective.
Problems powering up or down, waking from sleep, reconnecting with peripherals connected to the display (rather that the computer itself) are the most frequently reported issues. In general we expect these sorts of issues to improve with time.