Here's what worked for me to solve the 4K monitor scaling issue on my M1 Mac: I installed BetterDisplay, and on that app, I went to settings > displays: I noticed that the native resolution there was incorrect (1920 x 1080) so I changed it to the right one (3840 x 2160) and applied the changes. Once that happened, macOS finally recognized the monitor as 4K: scaling started working natively in the System Preferences, just like in any Retina display, without needing BetterDisplay.
Sxic
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