I have no idea the cause unfortunately! Post #4 also reports his light blinks while in sleep mode. in the Energy settings, prevent sleeping when display is off and wake for network access is off. Last night I put the mini to sleep and kept an eye on it for ~30 mins: there would be periods of no light, then the light would come on (using a consistent blinking patten), then go back to no light for a bit. I left it overnight and saw that it was blinking this morning. What was strange was that the mini itself was noticeably hotter and the mini SSD temp was 10 degrees higher around 41 degrees celsius, same with the external SSD.As someone who just ordered the same enclosure (have yet to receive it) and plans to use it in the same fashion--booting from the internal but moving my user folders to the external drive--I'm curious to see what the cause of the problem is in case I run into the same issue. I noticed in one of your posts, you checked the "wake for network access" option. Could this be the source of the blinking lights/activity on your external SSD? Do you have inbound or outbound connections from or to other computers on your network while your M4 is asleep
I don't have any connections to other computers on my network, so don't think that's an issue.
Would be great to hear your experience when your enclosure arrives.