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I'm having a very similar problem with my M1 MacBook Air. When I put a CD in, sometimes it will act like it's going to import the CD, but it usually just stops and says something like "file not found." That was at first. The last few weeks it has been doing just like yours- ignoring it totally. Both Geek Squad and Apple Support were not able to help at all. But of course, it worked like a charm when I brought the whole thing to Best Buy and tried to show them what it does. Figures. Sorry if this doesn't help you, but I feel your pain. I thought it was just my computer having a defect, but I see I'm not the only one. The only workaround to get music on my phone is this- I'll import a CD into iTunes on my old computer, then do a backup to my external hard drive. Then connect that hard drive to the M1, open up the last backup, then drag and drop. It sucks that you gotta resort to stuff like this on a brand new computer, especially considering how expensive these things are.
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