MacBook Air M1, 2020 keeps restarting for no reason

A kernel panic is often caused by a hardware issue, but can happen for other reasons.

I'd suggest trying:

• Restart your Mac into Safe Mode, and let it stay in this state for a while. This will clear some temp files and caches that could be the cause. Start up your Mac in safe mode - Apple Support
• There's a nice free app that would allow us to see if there's anything in software that could be the culprit called Etrecheck. This app doesn't reveal any private information, and has been successful many times in revealing software issues in Macs. This article explains how to post the results of your Etrecheck report here: How to use the Add Text Feature When Post… - Apple Community

Please keep us posted on how you get along.

Observations after quickly scanning your Etrecheck report:

• It appears you have an external drive connected? If that's the case you should run your Mac with that drive unplugged in the event it's the drive at fault.
• So I noticed CleanMyMac is installed. You'd be hard pressed to find any volunteers here who'd recommend having that installed, as all too often it's the cause of an issue, not the cure. I recommend you uninstall that app using the instructions provided by the vendor. (Simply dragging the app to the trash usually leaves behind a lot of "nasties".
• I'm not a fan of Mac fan control apps. (Pun intended). Unless, of course, you're an experienced user that's comfortable getting "under the hood" often.
• I've heard of others using online backups like iDrive. Have heard very little, though, about how easy it is to fully recover from a disk crash using that service.
• I noticed Microsoft Defender listed in apps installed in the last 60 days? We don't recommend anti virus, Mac "Cleaners", Mac "Optimizers", or Mac "Speeder Uppers", as they're simply not needed on a Mac. (Well, at least I think that's the case. But I've only been using Macs since 1984, so I may not have enough experience with them.😀)

CleanMyMac seems to be the cause of so many issues we've seen, I'd probably start with uninstalling it.

Perhaps others will chime in with their observations.