The plot thickens!!!
If I stop using USB-C to drive my display, leaving both TB/USB-C ports free, then plug this drive into one of the ports, the drive connects and operates as expected. So there is obviously something that these two ports can't do at once, in this case, drive a display and a USB-C drive at once.
So, that's pretty bad. Good I can see the drive working but now I have a different issue. Driving my display (BenQ 3200u) with HDMI doesn't give me the same display scaling options I get with USB-C. It goes from 2560x1440 to 3840x2160! Misses out the 3072x1728 area option.
Beginning to think these M1's are turkeys.