Are you sure you're not using any displaylink cable/drivers?
I had a choppy mouse at a certain point, but that was only with a bluetooth mouse. Bluetooth runs at a slower rate in any case, but I think it might have had to do with some interference.
I'm aware of bluetooth issues, it's a similar experience. However, this is using the built-in trackpad and built-in display, and occurs seemingly randomly. The bluetooth issue made it initially very difficult to find any discussion of the M1 issue.
