You're a Genius!!! Disabling low power mode fixed the issue for me. Thanks so much jgdavies!!

Same issue here with a 14” M1 Macbook Pro on 12.1. It is very annoying as I just got it and scrolling stops randomly and I have to lift my fingers and re-scroll on the trackpad. Turning off inertia fixes it in a way, but its kinda worse to scroll without inertia. I’m downloading 12.2 beta to see if its fixed there, if not I will take it to the apple store and ask to return it.