I get this on my M1 Air, maybe once or twice a week.
I use a Magic trackpad, and when it occurs the built-in trackpad still works fine.
To fix it I disable Bluetooth on the M1, then re-enable and everything is fine again.
This lead me to believe it was related to the Bluetooth stack, but if people are experiencing it while using built-in trackpad if be interested to know if my workaround still fixes it.
I use a Magic trackpad, and when it occurs the built-in trackpad still works fine.
To fix it I disable Bluetooth on the M1, then re-enable and everything is fine again.
This lead me to believe it was related to the Bluetooth stack, but if people are experiencing it while using built-in trackpad if be interested to know if my workaround still fixes it.