How to diagnose a panic report - How do I fix this?

Unfortunately it seems many of these newer Kernel Panic logs are in a much different format providing very different information than earlier versions of macOS had plus having terrible formatting. Seems Apple is even making the Kernel Panic logs a waste for troubleshooting (why Apple?). The only thing I can gleam from it is the last started driver was "com.apple.driver.AppleUSBMergeNub" which has something to do with USB. Plus there is this at the beginning of the log which also suggests an I/O issue "DCPEXT0 PANIC - IOMFB".

Did you connect or disconnect, or even use a USB device at the time of the crash? Try disconnecting all external devices in case one of them is causing the problem. @P. Phillips' suggestion for an EtreCheck is a good one in case the problem is being caused by third party software.

You can also try running the Apple Diagnostics to see if any hardware issues are detected. Only a failing diagnostic is really useful.

These panic reports may be useful to Apple engineers, but for us mortals they are pretty much inscrutable.

In order for us, users like yourself, to be able to help: Please run Etrecheck and post its full report here. Use the "additional text" button and paste the report into the text box.

The report will tell us about your mac model, drive, ram, and most importantly third party system modifications which could affect performance and cause crashes. With that information, hopefully we can get closer to the answer you seek.

Very much agree with @Luis S above statement.

Computers, generally, Panic because of either Hardware Issues and or Bad Kernel Extension installed and used on the computer.

Much of which may be revealed as per suggested -->> Download the Application Etrecheck directly from the Developer.