I am very pleased to see my colleague @ BDAqua pick up your question again
The M1 Mac Mini appears to have to tiny 256 GB drive
Which is fine for light usages
It also appears, to compensate for your needs, you also have an external drive.
Where it seems there is also a Volumes/Data
The denotation with a Mount Point of Volume/Data is important
What is that about and could the winking issue be somehow related to this ?
It is fine to keep ones Data on an external drive due to Space Limitations but does extend the possibilities of additional issue link was is currently happening ( Blink In and Out )
disk0 - APPLE SSD AP0256Q 251.00 GB (Solid State - TRIM: Yes)
disk3s1 - Macintosh HD - Data [APFS Virtual drive]
Mount point: /System/Volumes/Data
Encrypted
Used: 70.24 GB
Size: 245.11 GB
Free: 154.85 GB
Available: 182.34 GB
disk6s2 - Data
Filesystem: Journaled HFS+
Mount point: /Volumes/Data
Owners enabled: No
Used: 664 MB
Size: 499.91 GB
Free: 499.25 GB