I have that issue too. I am loosing whole screen no cursor just block white or grey or flashy screen. Force restart from power button than get these watchdog crash reports when boots.
panic(cpu 12 caller 0xffffff801436ea25): userspace watchdog timeout: no successful checkins from com.apple.WindowServer in 120 seconds
service: com.apple.logd, total successful checkins since load (1690 seconds ago): 170, last successful checkin: 0 seconds ago
service: com.apple.WindowServer, total successful checkins since load (1660 seconds ago): 153, last successful checkin: 120 seconds ago
Backtrace (CPU 12), Frame : Return Address
0xffffffa13941b670 : 0xffffff80110b9aed mach_kernel : _handle_debugger_trap + 0x3dd
0xffffffa13941b6c0 : 0xffffff80111fc6e3 mach_kernel : _kdp_i386_trap + 0x143
0xffffffa13941b700 : 0xffffff80111ecd1a mach_kernel : _kernel_trap + 0x55a
0xffffffa13941b750 : 0xffffff801105ea2f mach_kernel : _return_from_trap + 0xff
0xffffffa13941b770 : 0xffffff80110b938d mach_kernel : _DebuggerTrapWithState + 0xad
0xffffffa13941b890 : 0xffffff80110b9678 mach_kernel : _panic_trap_to_debugger + 0x268
0xffffffa13941b900 : 0xffffff80118be434 mach_kernel : _panic_with_thread_context
0xffffffa13941b970 : 0xffffff801436ea25 com.apple.driver.watchdog : __ZN10IOWatchdog14userspacePanicEP8OSObjectPvP25IOExternalMethodArguments.cold.1 + 0x27
0xffffffa13941b980 : 0xffffff801436e678 com.apple.driver.watchdog : __ZN10IOWatchdog35userspaceDisableUserspaceMonitoringEP8OSObjectPvP25IOExternalMethodArguments
0xffffffa13941b9a0 : 0xffffff801184569e mach_kernel : __ZN12IOUserClient14externalMethodEjP25IOExternalMethodArgumentsP24IOExternalMethodDispatchP8OSObjectPv + 0x1de
0xffffffa13941b9f0 : 0xffffff801436dab4 com.apple.driver.watchdog : __ZN20IOWatchdogUserClient14externalMethodEjP25IOExternalMethodArgumentsP24IOExternalMethodDispatchP8OSObjectPv + 0x7c
0xffffffa13941bb20 : 0xffffff801184f86b mach_kernel : _is_io_connect_method + 0x35b
0xffffffa13941bc80 : 0xffffff80111a7d81 mach_kernel : _iokit_server_routine + 0x4d81
0xffffffa13941bd90 : 0xffffff80110bf0e7 mach_kernel : _ipc_kobject_server + 0x337
0xffffffa13941be00 : 0xffffff8011095905 mach_kernel : _ipc_kmsg_send + 0x115
0xffffffa13941be60 : 0xffffff80110ad012 mach_kernel : _mach_msg_overwrite_trap + 0x2d2
0xffffffa13941bef0 : 0xffffff80111d0ec3 mach_kernel : _mach_call_munger64 + 0x273
0xffffffa13941bfa0 : 0xffffff801105f216 mach_kernel : _hndl_mach_scall64 + 0x16
			Kernel Extensions in backtrace:
				 com.apple.driver.watchdog(1.0)[7AE04EA4-D026-39A0-B2D5-5C9E4EE72967]@0xffffff801436d000->0xffffff801436efff
Process name corresponding to current thread: watchdogd
Mac OS version:
20C69
Kernel version:
Darwin Kernel Version 20.2.0: Wed Dec	2 20:39:59 PST 2020; root:xnu-7195.60.75~1/RELEASE_X86_64
Kernel UUID: 82E2050C-5936-3D24-AD3B-EC4EC5C09E11
KernelCache slide: 0x0000000010e00000
KernelCache base:	0xffffff8011000000
Kernel slide:			0x0000000010e10000
Kernel text base:	0xffffff8011010000
__HIB	text base: 0xffffff8010f00000
System model name: iMac19,1 (Mac-AA95B1DDAB278B95)
System shutdown begun: NO
Panic diags file available: YES (0x0)
Hibernation exit count: 0
System uptime in nanoseconds: 1715294184881
Last Sleep:					 absolute					 base_tsc					base_nano
	Uptime	: 0x0000018f5f802a27
	Sleep	 : 0x0000000000000000 0x0000000000000000 0x0000000000000000
	Wake		: 0x0000000000000000 0x0000000e3e075f52 0x0000000000000000
service: com.apple.logd, total successful checkins since load (4510 seconds ago): 452, last successful checkin: 0 seconds ago
service: com.apple.WindowServer, total successful checkins since load (4480 seconds ago): 436, last successful checkin: 120 seconds ago
Backtrace (CPU 6), Frame : Return Address
0xffffffc1aaa83670 : 0xffffff800a6b9aed mach_kernel : _handle_debugger_trap + 0x3dd
0xffffffc1aaa836c0 : 0xffffff800a7fc6e3 mach_kernel : _kdp_i386_trap + 0x143
0xffffffc1aaa83700 : 0xffffff800a7ecd1a mach_kernel : _kernel_trap + 0x55a
0xffffffc1aaa83750 : 0xffffff800a65ea2f mach_kernel : _return_from_trap + 0xff
0xffffffc1aaa83770 : 0xffffff800a6b938d mach_kernel : _DebuggerTrapWithState + 0xad
0xffffffc1aaa83890 : 0xffffff800a6b9678 mach_kernel : _panic_trap_to_debugger + 0x268
0xffffffc1aaa83900 : 0xffffff800aebe434 mach_kernel : _panic_with_thread_context
0xffffffc1aaa83970 : 0xffffff800d96da25 com.apple.driver.watchdog : __ZN10IOWatchdog14userspacePanicEP8OSObjectPvP25IOExternalMethodArguments.cold.1 + 0x27
0xffffffc1aaa83980 : 0xffffff800d96d678 com.apple.driver.watchdog : __ZN10IOWatchdog35userspaceDisableUserspaceMonitoringEP8OSObjectPvP25IOExternalMethodArguments
0xffffffc1aaa839a0 : 0xffffff800ae4569e mach_kernel : __ZN12IOUserClient14externalMethodEjP25IOExternalMethodArgumentsP24IOExternalMethodDispatchP8OSObjectPv + 0x1de
0xffffffc1aaa839f0 : 0xffffff800d96cab4 com.apple.driver.watchdog : __ZN20IOWatchdogUserClient14externalMethodEjP25IOExternalMethodArgumentsP24IOExternalMethodDispatchP8OSObjectPv + 0x7c
0xffffffc1aaa83b20 : 0xffffff800ae4f86b mach_kernel : _is_io_connect_method + 0x35b
0xffffffc1aaa83c80 : 0xffffff800a7a7d81 mach_kernel : _iokit_server_routine + 0x4d81
0xffffffc1aaa83d90 : 0xffffff800a6bf0e7 mach_kernel : _ipc_kobject_server + 0x337
0xffffffc1aaa83e00 : 0xffffff800a695905 mach_kernel : _ipc_kmsg_send + 0x115
0xffffffc1aaa83e60 : 0xffffff800a6ad012 mach_kernel : _mach_msg_overwrite_trap + 0x2d2
0xffffffc1aaa83ef0 : 0xffffff800a7d0ec3 mach_kernel : _mach_call_munger64 + 0x273
0xffffffc1aaa83fa0 : 0xffffff800a65f216 mach_kernel : _hndl_mach_scall64 + 0x16
			Kernel Extensions in backtrace:
				 com.apple.driver.watchdog(1.0)[C1A64FD7-AD16-37E0-8FA1-A78A8E91D9FF]@0xffffff800d96c000->0xffffff800d96dfff
Process name corresponding to current thread: watchdogd
Mac OS version:
20C5061b
Kernel version:
Darwin Kernel Version 20.2.0: Mon Nov 23 05:24:51 PST 2020; root:xnu-7195.60.74~7/RELEASE_X86_64
Kernel UUID: 1DCC1F01-821E-36A7-BAED-6B8548ECD80E
KernelCache slide: 0x000000000a400000
KernelCache base:	0xffffff800a600000
Kernel slide:			0x000000000a410000
Kernel text base:	0xffffff800a610000
__HIB	text base: 0xffffff800a500000
System model name: iMac19,1 (Mac-AA95B1DDAB278B95)
System shutdown begun: NO
Panic diags file available: YES (0x0)
Hibernation exit count: 0
System uptime in nanoseconds: 4528658183420
Last Sleep:					 absolute					 base_tsc					base_nano
	Uptime	: 0x0000041e690ff91d
	Sleep	 : 0x0000000000000000 0x0000000000000000 0x0000000000000000
	Wake		: 0x0000000000000000 0x0000000b389bb8ee 0x0000000000000000