Restart and Shut Down not working after Big Sur 11.7.10 update

Hello,

After updating to macOS Big Sur version 11.7.10 my MacBook Pro M1 2020 do not shut down, restart from Apple>Restart.... and Apple>Shut Down.... and Log Out from Apple menu>Log Out.

The Apple menu> Sleep and Lock Screen are well working.

I initially started FileVault ON after update and nothing changed. Now the File Vault is Turned OFF, can switch to Safe Mode but the Restart and Shutdown do not work even in Safe Mode.

(There is no application running as seen in Force quit...)

I reinstalled the same macOS Big Sur version 11.7.10 from Recovery mode without deleting the data but still not success.

I do not want to upgrade to Monterey or Ventura or Sonoma because I am afraid of losing working applications.

Let us know if there is any solution. Currently shutting down and restarting from terminal command.