these big upgrades normally replace all core OS files, so anything that was damaged before will have been replaced. My M1 mini has been rock solid, but have see a few kernal panics over the year, which I think have all been software and not OS related.
About 10 days ago, Monterey started to act up again. Very bad this time, lots of hiservices-xpcservice hanging messages, system became very unstable, Finder issue recurring in full force, etc. Reboots every 24 hours or even more frequently were needed.
Eventually, I found out that Clean My Mac had some services/processes running that grabbed >6GB memory and failing right before the hiservices-xpcservice messages appeared. I uninstalled Clean My Mac a week ago and have not had a single issue since.