Wanted to chime in that I am having the same problem. Can't connect my H2O to my new M1 MacBook Air w/ Big Sur no matter what I do. Have tried everything from factory resets, many different cables and adapters, a direct USB-C to micro-USB cable, booting into safe mode, and creating test user accounts. Even did a complete clean install of Big Sur, still no dice. This exact same H2O was working perfectly on my previous laptop, a 2013 MacBook Pro also running Big Sur. So it was the switch to the M1-chipped computer that started the problem.
I have been in contact with Kobo support and they have no idea why it's not working. But I'm not sure they have an M1 computer to test on. Meanwhile all the old tricks like resetting the SMC are not valid on these newer computers. So for now I'm at a dead end.
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