Two stage OS updates from Monterey (Sequoia then Tahoe)?

That should not be required. The main reason to proceed in two-step fashion that way might be to explore Sequoia as a MacOS first if you have concerns about Tahoe, perhaps because some of your software might not be ready for Tahoe.

An M1 Mac should easily run Tahoe with plenty of reserve.

Whether going to Sequoia or Tahoe, I would check that your applications, printers, peripherals etc. are compatible with the new version of the OS. If you have an older printer, figure out ahead of time if the manufacturer offers Tahoe-compatible drivers, etc. If you are using older versions of Microsoft or Adobe apps, make sure you can upgrade them with your existing licenses, or at least you will be prepared for any additional costs. If you are using docks or other peripherals, check online for Tahoe compatibility. It is best to have external drives in GUID/APFS format, but HFS+ should work. If you use other apps or software, make sure you either have or know how to obtain Tahoe-compatible versions.

I would uninstall any anti-virus, cleaning type apps, third party security tools, network monitors, and VPN before embarking on the upgrade. I would make sure that any external drives are NOT making use of drive manufacturer (third party) drive tools/firmware/software. There are many posts in Discussions where users found that these sorts of programs or tools were not compatible with a newer OS, even if they worked with an older OS.

Before any OS update or upgrade, it is advisable to make at least two backups. I have two Time Machine backups and at least one "clone" type backup that I keep current for any such upgrade/updates.