M1 to M3 Migration Assistant only uses Peer to Peer even with Thunderbolt cable attached.

Hello I am trying to figure out if M3 allows you to transfer data using Migration Assistance and Thunderbolt.

Source Mac is an 2021 M1 Max 16-inch and target Mac is a 2023 M3 Max 16-inch. Both are running Sonoma 13.5. When I use Migration Assistance the connection says peer-to-peer. I have tried 2 different thunderbolt 3 cables and 1 thunderbolt 4 cable. The cables are all known good cables and have no issues on any other computers. Computers are on Mosyle MDM but I haven't had any issues transfer computers before with the MDM.

Peer-to-peer is calculated to take up to 7hrs at 56mbps. It appears that you can't put an M1 into target disk mode and only has the option for Share Disk.

Is the only fast transfer option to use a thunderbolt drive and use Time Machine and then transfer everything? The only downside to this method is that it is double the work. You have to back up the source and then transfer to the new Mac. I loved the thunderbolt connection because it is a point to point transfer.

The migration article for Sonoma doesn't state anything about thunderbolt connection like the Ventura instructions show. Was this option taken away? Or do I need to turn on/off a specific setting to allow this?