From what I remember, it wasn’t intended as a long-term position, but was used in stop-gap circumstances (manager quits, tech lead temporarily takes on some people management duties) or for when an engineer was considering transitioning to the management track.
TLMs still have individual contributor responsibilities. M1s don't. The reason for that is generally that (especially junior) ICs aren't likely to push back against poor technical decisions knowing that the person they're pushing back against is also in charge of their rating. This feels quite fair based on my experience and as such I'm quite skeptical about TLMs in general.
Not true, TLMs can be D1+ level too at FB/Meta. Higher level TLMs more often than not tend to occur in more research-oriented organizations though (where the TLM is effectively a "principal investigator" type for some research area).