Anyone else have Apple Magic mouse that keeps dropping off new M1 Mac Mini??

I installed 11.2 (now running 11.2.1) and it did NOT resolve the problem. In my case it has always been the magic mouse which will disco/reconn then disco/reconn again. Seems like I have to keep clicking for that to occur, otherwise then I have to re-connect the mouse in BT settings. My magic keyboard has never had the problem which is occurring with magic mouse. So, seems like it may vary person-to-person if actually fixed or not with 11.2.

Check for the macOS 11.2 Big Sur update.

How to update the software on your Mac - Apple Support

It looks like it has some promising fixes for some of the initial M1 and BS issues.

https://appleinsider.com/articles/21/02/01/macos-big-sur-112-now-available-with-bluetooth-fixes-for-m1-macs

I'm still on 11.1 but this has seemed to solve the disconnect problem for me. In System Preferences go to Bluetooth, select Advanced, de-Select Allow Bluetooth devices to wake this computer. I picked that up from another discussion of this subject and it has worked perfectly for over a day. The keyboard no longer delays in getting characters onto the screen.

To offset this I extended the time for the computer to go to sleep. When it does sleep, touching the mini power button seems to wake it easily. A little less convenient, but I was so frustrated with the mouse it was close to sailing across the room and introducing itself to the wall.

Update to 11.2 and all will be working again.

I had a similar problem. Are you using WiFi? Try turning WiFi off and see mouse/keyboard connection is doing...

Edit: 11.2 may fix it, I will try it..