https://www.lenovo.com/us/en/p/accessories-and-software/monitors/home/66bekcc2us
27" monitor with 1920x1080 resolution – rather low for that size of screen. Has HDMI and VGA inputs. Lenovo lists the refresh rate as 75 Hz. I suppose that could be an issue if the monitor is not willing to negotiate down to 60 Hz.
In the comments, a Lenovo Product Specialist gave a link to the manual:
https://download.lenovo.com/consumer/monitor/l27e_30_ug_en.pdf
Page 2-6 indicates that when operating at 1920x1080 resolution, the monitor can run at 60 Hz or 75 Hz. So I'm not sure why you are having trouble. 1920x1080 @ 60 Hz should be well within the capabilities of the M1 MacBook Air, and of any decent third-party USB-C (DIsplayPort) to HDMI adapter.
Are you using a one-piece adapter cable? Or are you using an adapter in connection with an old HDMI cable which you had lying around somewhere? I believe the original HDMI cables were designed for 720p and 1080i HDTV sets, so I'm not sure if they would reliably carry 1080p. If you do have a HDMI-to-HDMI cable of unknown quality as part of the connection, you might try swapping it out for a good one.