You could use the CAC-1085 with a CAC-1567 but a direct USB-C connection would be preferable. Cable Matters has a USB-C to HDMI 2.1 Adapter. Product ID 201388. It’s basically a USB-C version of the CAC-1085 so it probably uses the same Realtek chip. It’s more convenient because it gets power from USB-C (like Club 3D’s USB-C to Dual Link DVI adapters) so it doesn’t need a separate USB power connection like the CAC-1085 does.

In either case, I don’t know how well they work with the M1 Mac. DSC is require for bandwidth greater than 25.92 Gbps. Bandwidth is pixel clock x bits per pixel. DSC might not be working properly in macOS Big Sur in some situations.

https://www.club-3d.com/en/detail/2487/usb_type_c_to_displayport_1.4_8k60hz_hbr3_active_adapter/

https://www.club-3d.com/en/detail/2496/displayport_1.4_to_hdmi_4k120hz_hdr_active_adapter_m-f/

https://www.cablematters.com/pc-1368-122-usb-c-to-8k-hdmi-adapter.aspx

https://kb.cablematters.com/index.php?View=entry&EntryID=136

https://www.anandtech.com/show/14535/realtek-demonstrates-rtd2173-displayport-14-to-hdmi-21-converter

Same question at https://insights.club-3d.com/thread/usb-type-c-to-hdmi-2-1/