OP:
1920x1080 is
"looks like 1080p", which I believe the Mac OS will use as the default setting when connected to a 4k display.
This is how it's supposed to be.
What the Mac is doing is "cutting in half" the full resolution of the display (3840×2160).
Thus, in "looks like 1080p", you have 4 "small" pixels representing each pixel.
In a practical sense, this produces images and text which are "at their sharpest" (the same way "retina" displays work on the laptops).
When you choose "looks like 1440p", this is forcing the Mac GPU to "scale" the image -- not "pixel for pixel" but "chopping things up" more.
The result will still look ok, but may not be
-quite as sharp- as the 1080p setting above. Also, on some Macs this can tax the GPU, but I reckon that a new Mini m4 won't be bothered by it at all.
Whether you want "looks like 1080p" or "looks like 1440p" will really be determined by your own personal tastes.
Personal experience:
In my own experimentation with Sequoia (I have a 2018 Intel Mini), I've found that the setting "just higher than" 1080p is usable for me. I believe it's 2048x1152.
I've also been using the free "Better Display" utility, which you can get here:
Unlock your displays on your Mac! Flexible HiDPI scaling, XDR/HDR extra brightness, virtual screens, DDC control, extra dimming, PIP/streaming, EDID override and lots more! - waydabber/BetterDisplay
github.com
It can be upgraded to the "pro" version if you wish, but the free version does all I need.