When bluetooth works, it's amazing. When it doesn't, it's a pain. I use an Apple Magic Keyboard (current generation, no TouchID), Magic Trackpad and AirPods. My M1 mini has been in service for a little over a month and has only recently shown bluetooth problems. The mini sits immediately to the left of my monitor stand on top of my desk and the rear left corner of the mini where the bluetooth antenna is located is no more than 3 to 4 feet from my Bluetooth accessories.
This week, I'll be going back to wired headphones for my remote lectures. I've been using my mini with Continuity Camera and AirPods this semester. When teaching, I log in with my MBP muted as a secondary machine to keep an eye on the chat log in Teams and as a backup in case something goes wrong with my primary machine. Occasionally, my AirPods will appear to be working well in Teams on my end and my audio drops out completely for my students (all of them, not just one or two), yet the audio and transcription in the Teams recording is intact. One day a week or so ago my keyboard and trackpad began dropping out at random while my AirPods worked great during the lecture. I grabbed my lightning cables and plugged the keyboard and trackpad in and all was well.
Issues seem more likely to arise when other bluetooth enabled devices are on and active nearby, as well as when I have an external drive plugged in via USB.