M1 MacBook Air Erratic Trackpad

I have MacBook m1 air purchased just about a year ago and until a few days ago, it has functioned faultlessly. Sudden movements of the trackpad, or sometimes erratic side scrolling and then the trackpad haptic sensors becomes hard to press, in summary, it makes the system unusable. I have tried doing everything under the sun to resolve this issue as this system is my daily driver I use for work, school and everything in-between. From booting in safe mode to check if its a software issue, to creating a another user profile on the system. Also tried cleaning the trackpad thoroughly incase of spillage.

Even disabling the trackpad when an external mouse dongle is plugged in doesn't seem to work as the trackpad is still active and malfunctions.