What exactly does "sudo pmset -a displaysleep 10 sleep 70" do?
Exactly: modifies two power management parameters, namely displaysleep and sleep. The -a (all) says apply to all power settings (battery and mains powered and ups).
The effect is that the display turns off after 10 minutes and the system sleeps after 70 minutes. BUT that is subject to nothing blocking going to sleep.
Also, Macs have multiple sleep states. These do vary between Mac models with significant differences between a) Intel and Apples silicon architecture, and b) between laptop and desktop. This makes advice on the web somewhat tricky to use. The only area where I think I have reasonable knowledge is with Intel MacBooks. My M3 MBP I have mostly left alone.
Even when sleeping, unless you take steps to prevent it, Macs will wake (dark wake) at intervals to carry out scheduled activities. It can also be woken by network activity. The degree of sleep varies, in particular, what is powered down and when. The intention being that any future wake will be as fast as possible, but allowing deeper sleep particularly to prevent battery being depleted too much. The initial stages of sleep, most likely, don't do very much except turn the display off and (I am now guessing) turning of the P cores in an Apple silicon processor.
The command
pmset -g log
will give you the history of sleep states. It is not easy to interpret and I would advise only using it on laptops where the battery seems to be running own faster than anticipated.
Beyond what is in System Settings, the only documentation is that given by the
man pmset
command. Notably this does NOT indicate which parameters are appropriate to each kind of Mac or even if some parameters have no effect on some Macs.
My Mac Mini M4 Pro is experiencing an odd occurrence when waking from sleep. No wallpaper, no dock and multi-touch doesn't work for one minute until it wakes up.
That sounds like one for Apple Support (assuming you have not modified settings beyond what is in System Settings).