I have a different issue with my M1 Mac Mini when it wakes from sleep. Occasionally (very occasionally) it will display a gray, static filled screen instead of the proper image. Usually after a few seconds it goes away, and then the correct image appears. In some cases it's necessary to disconnect the HDMI cable from the mini and then the display is correct.
I got the machine on Cyber Monday, and quickly found this flaw. I took the machine to the local Apple store, with photos of the problem so they could see what I was talking about. Intermittent problems like this are the worst to figure out. They first replaced the "I/O wall" and that did not resolve the problem; they saw the gray screen themselves while testing the computer. Then they replaced the logic board, which took several weeks as it is a BTO machine with a 1TB SSD and 16GB memory. I got it back yesterday. This morning it game me the gray screen when waking from sleep again. I'm continuing to test it to see if the problem is really back, along with some other unrelated configuration issues. The only thing left to replace is the PSU, and those are involved in power management/sleep issues. If that is done I'll have a complete new machine. But it is new from only a few weeks ago, anyway.
My testing has of course used several different HDMI cables and displays to rule out those items.
Aside from the frustrating video problem when waking from sleep the Mini has been very nice indeed. Just a bummer that it seems that it may still not be fixed.
Has anybody else had video problems with the M1 Mini?
John