The news broke out just after a Reddit user explains the issue posting, he is using a Logitech Mx keys keyboard, and MX Master 3 mouse and his M1 powered Mac is facing difficulty pairing these Bluetooth peripherals. However, other users manage to successfully paired their Bluetooth devices, but these devices get disconnected periodically. Moreover, Users are not only facing problems with Logitech Bluetooth Devices but also on Apple's own Bluetooth peripherals, for example the Magic Mouse and Apple Keyboard are also enlisted with this bug.
Apparently, performing hard reset the solves the issue temporarily sometimes this also fails either. Its more likely can be solved if Apple released a patch for this bug. As it can result in a major problem among M1 Mac users as Apple is adopting a fashion of reducing the number of ports on its latest devices, as most of the work is done wirelessly either on Bluetooth or WiFi. Rest assured we'll keep you update if Apple rolls out a software update to resolve this Bluetooth Connectivity Issue.