Same error happens to me in a MBP M1 2020 with Monterey 12.0.1 just installed.
To allow mouse to scroll is needed to switch off mouse and then switch on, no needs to restart MBP.
StefanoMzk
Users receive reputation points by contributing quality content to the forums.
Posts include post and replies published on the forums.
Post authors can mark replies as Accepted to indicate successful solutions.
Apple Developer Forums admins can mark replies as Apple Recommended to indicate an approved solution
From
Italia