I tried resetting the binaries and it did fix the issue for me. To reset the binaries for the macOS M1 terminal, you can follow these steps:
Open the Terminal application on your Mac.
Type the following command and press Enter: echo $PATH. This will display the current path for the terminal.
Copy the output of the command and save it in a text editor for reference.
Type the following command and press Enter: echo $SHELL. This will display the current shell being used by the terminal.
If the output of the command is /bin/bash, type the following command and press Enter: nano ~/.bash_profile. If the output is /bin/zsh, type the following command and press Enter: nano ~/.zshrc. This will open the shell configuration file in the nano text editor.
Scroll down to the bottom of the file and add the following line: export PATH=/usr/bin:/bin:/usr/sbin:/sbin:/usr/local/bin:/opt/X11/bin. This will reset the path to the default macOS path.
Save the file by pressing Control+O, then press Enter to confirm, and then exit the editor by pressing Control+X.
Type the following command and press Enter: source ~/.bash_profile or source ~/.zshrc, depending on which shell you are using.
Type the following command and press Enter: echo $PATH. This will display the new path for the terminal.
Verify that the path is correct by running a command that is installed by default on macOS, such as ls or pwd.
These steps should reset the binaries for the terminal and restore the default macOS path.