Not in all cases. My M1 charges just fine through my Samsung monitors TB3 interface. My TimeMachine drive is attached to another TB3 interface on the same monitor. Works great. No sleep issues, no issues really at all.
The problem was charging through an USB-C hub, power source connected to hub. I am not aware of bricked Macs by just connecting a power-less USB-c hub.
That’s the impression that I got too. It seems that a lot of the issues were with hubs with PD and from lesser known brands. I have an Anker hub, the type which attaches directly via two connectors and provides various interfaces, it’s a great piece of kit and very reliable. ( well I did have it, it seems to have migrated to my Wife’s MacBook 🤔)
The update makes it seem to me that they have added extra protection against out of spec pd devices. I guess they should have expected such devices, so arguably this is a ‘software bug’, but not really.