I think I've found a solution for now with my MBP M1 2020.
After the Monterey upgrade, my 7 in 1 USB-C Hub by WKD stopped all USB connectivity (mouse, keyboard and external storage etc)
However I had a small USB-C to HDMI Adapter 4K, Multiport Type C adapter with USB 3.0 and charging port I was using on my iPad Pro. I plugged this into one of the USB-C ports on my MBP, used a USB C to USB male adapter for (Acessorz _ on Amazon UK) to connect my 7 in 1 USB-C Hub into and all the USB ports are back working again.
I'll try and give the descriptions below of what I'm using.
7 in 1 USB Hub
7 in 1 Premium USB-C Hub by WKD Online - Aluminium Space Grey adapter with 4K HDMI and USB-C 3.1 Port - 1 x USB 3.0 and 2 x USB 2.0 OTG SD Micro Card Reader - Apple MacBook Pro Samsung Dell Compatible
USB C to USB male adapter
USB C to USB Male Adapter, Acessorz [2-Pack] Mini Hi-speed USB Female (Type-C) to USB 2.0 Male (Type-A) Fast Charging & Data Sync OTG Adapter Connector Converter - Pack of 2 (Black)
my small USB C To HDMI Adapter 4K, Multiport Type used for my iPad Pro
ElecMoga USB C to HDMI Adapter 4K, Multiport Type C Adaptor with USB 3.0 + USB C Charging Port Digital Converter USB C Hub Compatible With Macbook Pro, Google Chromebook, HP, Samsung S8/S9, And More
Hope it helps anyone out, as I've been trying to sort this issue non stop for hours.