Having an issue which I see has happened to others. I was trying to set up an M1 MBA running 12.2.1 to have Messages synced via ICloud and Text Message Forwarding to it enabled on my iPhone X running 15.3.1. But the SMS will not be sent. The Mac and the phone are communicating, as phonecalls can be answered or initiated on the Mac. But the Bluetooth system prefs show the phone as not connected, so I tried to see if connecting would help. The iPhone connects for a couple of seconds and then disconnects with a dialog that the M1 is not supported and an offer to ‘forget this device’. Occasionally it will get as far as offering me a passcode, but then the connection fails with the same dialog.
I have reset networking on the iPhone and restarted it. I have killed bluetooth on the Mac with sudo pkill bluetoothd and have shut it down and restarted since there is no option on an M1 to clear NVRAM or reset SMC. This has not helped. I see System Prefs claims the Mac is discoverable, but the menubar icon for BT says Discoverable: Off. Initiating a pairing from the phone does not work either (and the fact I can means the Mac is discoverable!)
Has anyone found a way to make this work?