'Daemon service not running until user keys in password during reboot on M1 machine

We have a daemon service that runs before the log-in window is thrown. It works fine on Intel. But it does not run until users key in their password when the login window is thrown on M1 and Monterey OS. We are expecting that service to run before the log-in window is thrown.

Does daemon service behavior changed on M1 with Monterey OS?

We have checked the FileVault also. Its disabled



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