The symptom is exactly the same with this thread Unable to display open and save panels - Apple Community and there is no solution yet.
And it happens on
macOS Monterey version 12.1, MacBook Pro (16-inch, 2021, Apple M1 Pro)
Upgrade to macOS Monterey 12.2.1 you are two patch levels behind the latest version.
macOS Monterey 12.1 12.1 12/13/2021, 18:35:50
macOS Monterey 12.2 12.2 01/26/2022, 18:59:29
macOS Monterey 12.2.1 12.2.1 02/10/2022, 20:13:01
Upgrade to macOS Monterey 12.2.1 you are two patch levels behind the latest version.
macOS Monterey 12.1 12.1 12/13/2021, 18:35:50
macOS Monterey 12.2 12.2 01/26/2022, 18:59:29
macOS Monterey 12.2.1 12.2.1 02/10/2022, 20:13:01
Unable to display open and save panels