Turns out that the firmware update to 12.5 from 12.4 fixed it. The update is detected and pops up after updating Monterey to 12.5, then it downloads in the background (no way to force the update dialogue) and then shows as a specific update, separate from the OS. Once this shows, it applies and says not to unplug or restart anything. That completes and then the display restarts and the OS requires login again. It appears to be an issue with M1 compatibility and the Studio Display as rotation only worked on the Intel MBP that I used previously. There is no mention of this anywhere else and support didn't know but suggested updating the OS and the firmware. Works like a champ now.