MacBook Pro M1 neither turn off, nor locks the screen when lid is closed

Hi there,

I have a MacBook Pro 14" with M1 Pro 10 core silicon, bought 2 months ago. From the very beginning, when closing the lid, mac used to turn off. When opening it later, it showed lock screen, asking to put my finger on the finger button to log in.

But around a week ago I've noticed that it neither turns off, nor locks the screen when closing the lid. I hadn't changed any possibly related setting. In addition, when looking a solution I decided to reset (turn on and then turn off) "System Settings - Display - Prevent automatic sleeping on power adapter when the display is off", (it was OFF), but when it became ON, I was no more able to turn it OFF back.

It happened on the previous minor version of Ventura (I assume, 13.1). After noticing this weird behaviour, I've updated to the latest Ventura 13.2, but the issue remained.

I've googled, but neither of articles helped:

a) reset SMC: on M1 SMC is kinda inbuilt into the processor, and the only way to "reset" it is to turn off mac for at least 30 seconds - my mac gets turned off each night for 8 hours, and it does not help;

b) reset NVRAM by cmd+opt+P+R does not help neither;

c) issue with "System Settings - Display - Prevent automatic sleeping on power adapter when the display is off", it was turned off, then I turned it on to kinda reset and turn off later, but since then this toggle is always on, and I cannot turn it off - how can I reset this one too?

Appreciate your help, as I'm a newbie to "the laptop with perfect desing and construction".

Cheers,

Artem.

`sudo pmset -g` returns:

System-wide power settings:
 SleepDisabled		0
Currently in use:
 standby       1
 Sleep On Power Button 1
 hibernatefile    /var/vm/sleepimage
 powernap       1
 networkoversleep   0
 disksleep      10
 sleep        1 (sleep prevented by powerd)
 hibernatemode    3
 ttyskeepawake    1
 displaysleep     0
 tcpkeepalive     1
 lowpowermode     0
 womp         0

Additional settings:

AirDrop: on/off, Bluetooth: on/off, WiFi: on/off (no influence)

System settings - General - Login items: None in the list

System settings - General - Allow in background: Paragon NTFS for Mac; Rectangle.app (these were here from the second week of my experience)

System settings - Battery - Low power mode: Never

System settings - Battery - Options - Wake for network access: Never

System settings - Lock screen - Start screen saver when inactive: Never

System settings - Lock screen - Turn display off when inactive: Never

System settings - Lock screen - Turn display off on power adapter when inactive: Never

System settings - Lock screen - Require password after screen saver begins: 5 minutes