If you click "Ok" on that notification in your screenshot, does the Mac allow you to use it or does it reboot again? Don't try to re-enable any kernel extensions yet, since at least one third party kernel extension is causing this problem.
If it just keeps rebooting after clicking the "Ok" button shown in the screenshot and you don't re-enable any kernel extensions, then try booting into Safe Mode which should prevent even more third party items from launching automatically during boot and login.
What happens when you attempt to boot into Recovery Mode? Maybe both issues are related.
What is the exact model of the M1 Mac and version of macOS being used? You can get this information by clicking the Apple menu and selecting "About This Mac", otherwise you can get the exact model by entering the system serial number here:
Check Your Service and Support Coverage - Apple Support
Disconnect all external devices in case one of them is causing a problem.
Try running the Apple Diagnostics to see if any hardware issues are detected.