Apple has introduced new security policies for Silicon machines that requires end-user authentication for installing security updates. You can refer to this link from the vendor for more details on the same.
macOS 12 Monterey security patches:
macOS 12 Monterey security updates can be deployed to Silicon machines through the patch management module. This was not possible with the macOS 11 Big Sur updates on Silicon machines, as the vendor did not provide a non-interactive way to achieve this.
macOS 12 Monterey updates, however, can be deployed to the Silicon machines by the system admins. But, they need to be authenticated by the end-user (by providing user name and password) for the installation to be successful on client Silicon machines.
The end-user authentication prompt looks like the picture given below
ManageEngine is working on simplifying this process and eliminating the user-authentication step for Silicon machines. This is part of our roadmap and can be expected in the future.