Unfortunately, until this gets fixed by Apple with a software update, try to avoid using more than two Bluetooth accessories. It seems that the M1 Mac Bluetooth issue occurs more often when you use multiple wireless connections.
More details about how to do this are found here. This will spare you from connecting the wired keyboard to type the administrator password. If you own an Apple Watch and aren’t using it to unlock your Mac, you should start doing it now. A reader has reported that his mouse is often laggy but the jumpiness never occurs when the unifying receiver is used. Tip: The unifying receiver also helps to go around intermittent Bluetooth connectivity when the accessories actually connect. If you don’t want to use it as primary option, have it at least available as a backup solution in case you have to reboot. It uses a similar pairing technology to the Bluetooth system and will help you to connect your peripherals to a M1 Mac. Keep your wires close, because you will need them to type the administrator password. However, do expect for the Bluetooth connection to fail again if your reboot your Mac. After the initial boot, you can attempt to pair your wireless keyboard and mouse again. This means that you need a wired keyboard and mouse to complete the Mac setup. In some cases the Bluetooth connectivity refuses to work from the get go. Here are some troubleshooting tips and workarounds that you can apply to improve this situation: 1.
including the MacBook Air, Pro as well as Mac mini. The entire range of M1 computers sold by Apple seem to be affected, according to this Reddit topic. The M1 Mac Bluetooth problems occur with both third-party Bluetooth accessories as well as Apple peripherals like the Magic Mouse, Magic Keyboard, Trackpad and even with the AirPods and AirPods Pro wireless earbuds. Are you experiencing Bluetooth issues on your M1 Mac? Is your brand new computer not connecting to Bluetooth accessories? Or you do manage to connect the peripherals, but the connectivity is intermittent or laggy? Is your wireless mouse, keyboard or headset unexpectedly disconnecting from macOS Big Sur? This is a common macOS 11.0.1 problem plaguing Macs that are equipped with the new M1 Apple Silicone chip.