First, whenever the application crashes, delete its preferences.
To delete preferences, hold down command and option while starting FCP X and click Delete Preferences. The application will start in a default state, and open an “Untitled” library.
Reopen the library you were working on, set the preferences the way you like them, and try again.
Second, you are using the very first version of Monterey, releasdd about a year ago. The current version is 12.6 and you should consider updating.
Third, many things can have an impact and we need to know more. Please run Etrecheck and post its full report here.
Use the “additional text” button and paste the report into the text box.
It is often the case that third party software modifications impact on professional applications like FCP. The report may tell us if that is the case here.