Yeah. I've done all the normal troubleshooting stuff. That USB problem seems to affect external hubs, whilst this is a USB-C disk plugged directly into one of the USB-C ports. The fact that it boots in safe mode indicates some kext or program is causing it rather than a fundamental problem.
Another strange thing I discovered yesterday is that I can't clone the Monterey install to another external drive. I forget the exact error message but I think it said something about the drive not being unlocked. Strange. But that could be because I'm trying to clone a Monterey disk whilst running Big Sur.
It's not a huge deal as I've no need to upgrade right now, but I don't like it when I can't understand a problem.
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Proud to be "woke".