Another non-answer: same problem still on upgrading to Monterey 12.3.1 (21E258) — in my case Seagate Technologies. That's external drive management. My view is that Monterey/M1 Silicon is a technology still in development, patchy, lacking some old functions, introducing problems, and compounded by developers not keeping up, partly because it is still a small part of the stable. Apple needs real investment. Since going to M1 there has been nothing but a series of problems and with big names like Microsoft.

I had this problem with Segate. First I ran it 3 times and that fixed it. Maybe for now anyway. I also found this on their website, which avoids using Terminal. https://www.lacie.com/gb/en/support/kb/how-to-change-startup-disk-security-settings-on-an-apple-silicon-mac/ Some Seagate and LaCie software use a kernel extension (kext). Apple silicon Macs require that users change the security settings to ‘Reduced Security’ for the software to function properly. To change the level of security on your startup disk: Shut down the Mac Press and hold the power button until you see “Loading startup options” Click Options Click Continue If asked, select a user > Click Next > Enter password for admin account In the menu bar at the top, Select Utilities > Startup Security Utility Select the startup disk If the disk is encrypted, Click Unlock > Enter Password > Click Unlock Click Security Policy Select Reduced Security Put a check next to “Allow user management of kernel extensions from identified developers” Click OK Enter admin password > click OK Once changes are applied, click the Apple icon and Restart