Macbook Air M1 battery wont charge after prolong storage and show Service required message

If Lithium batteries are allowed to become completely discharged for any length of time, then the battery can become permanently damaged.

Lithium batteries must be stored with a charge level somewhere between 20% to 80%. Here is an Apple article with more information:

Batteries - Maximizing Performance -- Tips for Extending Battery Lifespan - Apple

While Apple mentions in that article to charge devices every six months, you may want to perform your own spot check after a month to see how much battery charge has drained.....then maybe two/three months etc. It is important the laptop is completely powered off, but with the recent models a lot of things can cause the laptop to power on again such as connecting/disconnecting external devices/cables, touching any key or even the Trackpad, or opening the display clamshell lid. If the laptop powers on and is left in sleep mode, then the battery can drain quite quickly from hours to perhaps a week or so.

Your battery is permanently damaged and needs to be replaced if you want to use the laptop without the power adapter.

"Macbook Air M1 battery wont charge after prolong storage and show Service required message: [...]Has anyone experienced something similar? Is there any way to fix this without a battery replacement, or is it likely permanent degradation due to long-term storage?"

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"Battery Service Recommended"

Yes. I have come across this message. And the culprit was from condensation. Lifting up a keyboard, water was shown. The same occurs when you place a keyboard cover over a laptop's keyboard, and you continually use it. In all, you are getting this message, because it is low in operability.

So, See About Getting this Serviced:

A. Apple Support:

You have a One-Year, Out-of-the-Box, Limited-Warranty. So, if less than 80% contact Apple Support, and see if you can get this serviced. Set up a Genius Bar Appointment at your local Apple Store. You might be required to provide a proof of purchase. There, it will be diagnosed, and you'll be provided with your options..

Apple Support Contact Information:

• Contact Us - Choose Locations
• Proceed from there as Necessary

or...

B. Contacting an AASP: 

Also, take this to an AASP (Apple Authorized Service provider), asking for assistance.

1. Go Here: Find Locations - Apple Authorized Reseller
2. Click: Service & Support
3. Enter: your location information
4. See: if there is an AASP nearby
5. Contact: an AASP that shows up, and find out more about the services that they offer to fix the iPhone

Or...

C. A Retailer:

Contact your local retailer, seeing if they replace iPhone batteries.