After ruling out startup items and system extensions, my next thought is it has something to do with the Accessory Security settings. However, that should only affect Apple Silicon systems, not Intel Macs.
Really appreciate your suggestions to get to the bottom of this. Tried the tccutil reset on my M1 Mac mini - the system came back with a success message.
Unfortunately the USB devices are still not recognized.
They show up in the system information though:
I suspect this might have to do with the menu item 'Allow accessories to connect' not showing under System Settings => Privacy & Security even after the successful tccutil reset.