Hey @JOLoughlin, making the change to DisplayPort 1.2 did the trick for me. Thank you so much for this suggestion. Since I made the change last week my Mac Mini M1 has been able to wake the screen every time.Was having a bunch of sleep/wake issues with my M1 Mac mini 16gb and LG Ultrafine (not the Apple versions, newer one) and external hard drives. I had to adjust some energy saving settings (Prevent the computer from sleeping when the display is off: checked, Put Hard disks to sleep when possible: uncheck). Plus my monitor I believe was causing kernel panic crashes when my mini went to sleep it would just crash and reboot. SOLUTION was to change the DisplayPort settings on my monitor from 1.4 to 1.2.
Apple needs to play better with non-Apple external monitors (unless they intend to start making their own that aren't more than a Kidney) OR LG needs update their software and drives, I don't know who to blame for these problems. Getting the reality check on not being able to control brightness and volume with keyboard since replacing my iMac.
Also having audio issues with FaceTime. The speakers in my monitor don't work. the only output that works is the mini’s speaker which are… not great.
As for the speaker issue you are having. I actually have a set of Bose Companion 2 speakers plugged into the headphone jack on the back of my Mini. It sounds amazing and works with FaceTime or any other app.