That said, I stumbled on a solution that’s been almost totally effective: I only ever wake from sleep with the TouchID button. I suspect (not very educated hunch) the problems with this newer model have something to do with timing of wake/power signals being sent before any other device data while waiting for the T2 to unblock.
Anyway, you might give it a try. I think I’ve had to re-plug all of 2-3 times in the last year (whereas failure rate waking from my external keyboard was close to daily before, and required a reboot at least a couple times a week).
https://www.macrumors.com/2020/11/24/m1-macs-able-to-run-six...
I think things got a lot worse when Apple ditched first party displays. I bought LGs because that’s what Apple sold and they just don’t work reliably enough (constant wake from sleep issues, across multiple laptops, macOS versions and cables/docks).
Got those screens right away when the MBP2016 came out. It is a great setup, but unfortunately quite unstable. The MBP2016 had tons of crashes, after 4 logic board replacements it got swapped out for a 2018. More stable, but I still have to follow some ritualistic order plugging/unplugging them…