+1. Same issue, really frustrating. Running killall Dock sometimes works, but sometimes I have to reboot entirely.
Running macOS Monterey 12.5, MPB 14" 2021 with M1 max. If peripherals matter, I'm using an external monitor via USB-C to Display Port with the laptop open as a secondary monitor, and using a Kinesis Advantage 2 keyboard and an Anker wireless mouse.
Any devs out there, please let me know if you need any kind of debug info. I would love to see this fixed someday.