Starting with macOS Big Sur, Apple Silicon devices must be placed into Reduced Security mode for KEXTs to be managed remotely via MDM: How to fix the Kernel Extensions and Software Updates Warning on Apple Silicon
Admins can see whether devices have been placed into this mode by adding the All KEXTs Allowed device fact, available in our Community section, to the Catalog where it can be added to policies and run on devices:
Many thanks to Shawn Maddock for submitting this device fact to the Addigy Community.