I read about this issue over on a Dorico post. Short of it is:
Airpods are not only headphones but also a microphone and so there are two identically named devices. No matter which of the two you choose, always the first one gets picked, which is the microphone. Hack-around mentioned in post, maybe not supported yet in M1. You can read more about it here:
Also, I have the same problem on a MacBook Pro 2021 with Nuendo (used for Atmos work). Which is not a big deal, I wanted to use the AirPods as a quick check, now I just export a mixdown and open it in the actual devices (AppleTV, Macbook, Quicktime player, etc).