Software Fix for M1 Mac Bluetooth Connectivity Issues Reportedly On the Way
Apple is reportedly working on a fix for the Bluetooth connectivity problems that some M1 Mac users have experienced since the new machines were launched back in November.

When the M1 MacBook Air, M1 MacBook Pro 13-inch, and M1 Mac mini models arrived in customers' hands, a number of owners almost immediately began reporting various Bluetooth problems ranging from intermittent disconnects of wireless peripherals to completely non-functional Bluetooth connections.
Until recently, there was no consensus on whether the issues were due to a software problem or something more deep-seated, since Apple has not commented on the issues. However, The 8-Bit notes that The Atlantic writer Ian Bogost, who has personally run into Bluetooth problems, tweeted on Sunday that Apple told him "a fix is in progress and forthcoming just about anytime."
The development will be welcomed by anyone whose use of an M1 Mac has been blighted with the issues, which reportedly affect third-party accessories like Bluetooth mice, keyboards, and headphones, as well as Apple products such as AirPods, Magic Mouse and Magic Keyboard.
Mac mini owners have been worst affected, with the problems compounded by the fact that many rely on wireless peripherals to interact with their Mac in order to free up available ports. Some MacRumors staff members have also experienced similar problems.
Apple hasn't specified what's included in the coming macOS Big Sur 11.2 update, a beta of which is already in the hands of developers and public testers, but it likely includes performance improvements, security updates, and fixes for bugs that weren't able to be addressed in the release version of macOS Big Sur.
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Top Rated Comments
Unplugged the Logitech MX mouse and it's fine since.
Also I don't think the issue relates to M1 Macs only. Had same problems with my 2018 Mac mini.
There used to be a work-around using SwitchResX application, but the M1 stopped supporting custom resolution configurations.
Also the screen wake up time is quite long compared to anything on Windows.