From Howard Oakley:
Try connecting a dock to your M1 Mac while it’s asleep, then waking it up. Although you might be lucky and get away with this, it seems that a panic is a common result, as if the Mac woke up next to someone who they didn’t expect to be sharing their bed.
Unfortunately, true. The silver lining might be that over time kernel panics reduce as the new M-series matures. All new technology and platforms requires a learning and stabilization curve, even ones as tightly integrated as Apple’s new silicon.
Fingers crossed on that.