Insufficient performance Lightroom or MAC? Ram problem or overall untuned system?

The M1 architecture shares memory between the GPU and the CPU parts, so if you have 16 GB and are driving two high resolution monitors and are using a GPU heavy program such as Lightroom, you will notice this as your screenshot shows with significant memory pressure (the orange color in the activity monitor screenshot). Effectively you basically have a system with only something like 8GB of usable memory which as you probably know is by far not enough for Classic. The cause of your slow performance is likely lack of memory for the system you are trying to drive. For Classic use on the M1 architecture and driving multiple displays and files from high MP cameras, I would not recommend less than 32 GB of memory. 32 GB was already my minimum recommendation on the intel architecture for Classic by the way.

I have a Mac mini M1 spec'ed as yours and haven't experienced poor performance. That being said, I only use one 4K monitor. In your case, with two monitors I would expect more pressure on a16GB system since a greater proportion is being used by your two displays rather than one. If one or more these is 4K or higher then this puts even greater pressure on the amount of memory being used for non editing purposes.  Additionally, with more than 12GB of ram, LrC will use a chunk of same when you switch to the Develop module. It does so for no other purpose than to make rendering faster when louping from image to image. This was fine when users also had a dedicated GPUwith on-board memory but less so when the GPU is using the same pool of memory as the CPU, etc.  Eventually, swapping to the SSD to release the real memory for editing becomes necessary.  I should add that this is how Apple designed the M1 series SOCs to work but the way Lightroom Classic in particular currently uses memory in the Develop module tends to make significant swappping to the SSD much more likely.

Unfortunately, I can't offer a solution to your issues but would suggest that you check whether using one display rather than two helps. It's also worth noting that some users report that disabling the GPU in the Performance tab of Preferences helps reduce the amount of memory being used but I suspect it is of limted benefit with prolonged heavy editing, and will likley make editing images feel somewhat slower. 

Are you talking about Lightroom Classic? You never said "Lightroom Classic". What version NUMBER?

What actions are slow in editing? Please be specific and detailed.