bluetooth issue in MacBook Air m1

This is Apple's guidance for pairing Bluetooth devices to your Mac.

Connect a Bluetooth device with your Mac - Apple Support

It requires that the device be put into its own pairing or discovery mode. You'll have to check the manual or manufacturers guidance for how to do that. If the device has already been paired with another computer, phone or device then you may have to unpair it from that before you can pair it with the Mac.

To pair Bluetooth on a MacBook Air M1, put your device in pairing mode, then go to System Settings > Bluetooth, ensure Bluetooth is on, and click Connect next to your device in the "Nearby Devices" list. 

Step-by-step pairing guide

1. Prepare your accessory: Turn it on and put it into "pairing mode" (often indicated by a flashing light, check the device manual).
2. Open Mac Bluetooth settings: Click the Apple menu () > System Settings > Bluetooth.
3. Ensure Bluetooth is ON: Toggle the Bluetooth switch to the On position.
4. Connect the device: In the "Nearby Devices" list, hover over your accessory's name and click the Connect button that appears.
5. Confirm (if needed): Accept any on-screen prompts or enter a passkey if requested. 

I hope this helps.