So the saga continues with Blackmagic Design Desktop Video misbehavior on Mac M1s. BMD tech support confirmed that there is an issue with DV 12.8.
The device shows up in system Preferences, but is not outputting video with Final Cut Pro, nor Premiere, only with Resolve.
Solution: downgrade to DV 12.7.1, which works just fine.
I had to Restore legacy video device prior to installation as explained in the Apple support page.
Always uninstall before installing new software.
BMD installer / uninstaller makes downgrading easy.
FCP Video standard is populated, unlike DV 12.8
Working correctly with macOS Sonoma 14.3
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