Ok. My current theory is that this occurs when connected to a USB-C PD device that does not fully comply with the USB-C PD spec. Occasionally, these devices may be sending weird power signals to the Mac disrupting sleep/wake cycles in unexpected ways leading to the issue. I cannot reproduce the SOCD report error at this time.
There is a long thread about Dell U3818W and U3419W monitors not following the spec as advertised leading to the sleep/wake power signal issue arising on Macs. The response from Dell on the matter is laughable.
On M1 it happened also to whom who had nothing attached to USB ports though. When happened to me I had two empty cables connected, the USB-C to lightning which came with my iMac, and the Apple Watch 5 USB-A charger connected to the official Apple USB-C to A converter