Just spoke to MS and they have no clue - firstly said that they didn't support the M1 then said it wasn't known about and when I sent them this link they went quiet. COMPLETELY USELESS ...
almost as bad as NEW OUTLOOK - what the hell is that all about :-(
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YES - while spotlight is actually indexing it actually works. If you touch all files in the Profiles directory and below that also forces a reindex and during that time you get results but these when disappear when the touch finishes.
#find . -type f -exec touch {} ;
Microsoft support (on my O365 subscription) have no frigging clue that they even supported M1 native LOL
We are screwed until they decide to fix it.
BTW I have 12.1