Hi, I still experience the same problem. I had to connect and reconnect the mouse USB. I'm using my cheap and favorite A4tech OP-620D mouse.
Please note the scrolling works again when I unplug and then plug the USB back to the USB port once again. I initially thought it could be the Dongle I'm using but seeing this thread I don't think the issue is with the Dongle but it seems it has something to do with the Mac M1 or the OS/Software.
I'm using: MacBook Pro (14-inch, 2021) with Apple M1 Pro, 16GB RAM, macOS Monterey Version 12.5
I have the following running on the Background:
Wireguard 1.0.15
Surfshark 4.3.0
ESET Endpoint Security 6.11.202
Magnet 2.9.0