One of my graduate students experienced this, the hard way: writing up his thesis, his mum plugged in "the wrong USB C" charger. I don't know exactly what happened, but the board was utterly fried. The problem with the soldered-to-the-motherboard, everything-utterly-encrypted approach is that it's almost impossible to do data recovery. On the M1+ models, you literally can't do anything except semi-fix the motherboard as the flash and its controllers are integrated and the keys are cryptographically securely stored. This video [1] shows what data recovery is really like -- I don't often link to YT videos, but it is an hour long, involves an awful lot of BGA de-balling and re-balling and the scouring of spare chips from other donor dead machines, as Apple doesn't let manufacturers sell the chips separately and datasheets are all NDA'd.
We're very much in the part of the curve where you'd need a lab and a lot of serious work to get data off these things without either sacrificial macs or luck (e.g. one blow voltage regulator). Of course, the flip side of this is that your data is really, really secure. You just have to be damn sure that you back it up correctly.