As long as it's not a hardware issue then I'm cool with it if it's only for a short time. Does your mouse disconnect, reconnect, disconnect, reconnect, then fine?I have MacBook Air M1 and Magic Mouse 2 and I experience similar issue - my mouse randomly disconnects and reconnects - I tried everything - resetting, removing from my device list, factory reset etc. - on my previous intel based Mac it's never happened :C
I have an M1 Mini and my Apple mouse and keyboard frequently disconnects and reconnects, didn't have any issues with my MacBook pro.
Nope, nothing plugged into usbCheck your USB cables. Do you have a cable plugged into a device at one end, and unconnected at the other? Did you attach an external drive with the cheapest possible USB cable?
The reason to check USB is that the USB3 data rate is almost the same as the carrier frequency for Bluetooth. An unshielded cable can interfere with Bluetooth.
Interesting. Some MM 2018's have had the same issues since release, with no fix. I guess Apple haven't fixed it in 2020 either.