Have you even seen a 5K display? As stated above it is 3840x2160 with TB2
The 5K works at 5K on M1 Macs now.
Not possible for the LG UltraFine 5K because it requires two DisplayPort 1.2 signals over Thunderbolt 3 but the M1 Macs have only one DisplayPort connected to Thunderbolt. Are you talking about a different 5K display?
Since AGDCDiagnose and SwitchResX don't work on M1 Macs, the following may show what resolution it's outputting (I don't have an M1 Mac to test):
log stream --style compact --info --debug --predicate 'message matches ".*[^0-9]0*(1920|2560|3840|5120|6016|6200|7680)[^0-9].*" and not senderImagePath matches ".*(MediaToolbox|Safari|webinspecterd|deleted|IconServices)" and not processImagePath matches ".*(Safari|System Preferences|Dock|SwitchResX Daemon|NotificationCenter|Terminal)"'
Run the command then change the resolution to 5120x2880 and see what gets logged. Press Command-Period to stop streaming. Press Command-K to clear the terminal window.
If you see many of
=== Messages dropped during live streaming (use `log show` to see what they were)
then stop streaming, and change
log stream
to
log show --last 1m
to show that last 1 minute of messages.
If you see a lot of extraneous messages, change
--style compact
to
--style json
, look at the processImagePath and senderImagePath info of some of the extraneous messages and add to the processImagePath or senderImagePath exclusions in the log command predicate and try again.