Monterey - repeated kernel panics : watchdog timeout: no successful checkins from dfrd in 180 seconds

My MacBook Pro (13-inch, 2019) is experiencing repeated kernel panics with the message below:

panic(cpu 1 caller 0xfffffff02856d6ec): userspace watchdog timeout: no successful checkins from dfrd in 180 seconds
service: dfrd, total successful checkins since load (290 seconds ago): 11, last successful checkin: 180 seconds ago
service: remoted, total successful checkins since load (290 seconds ago): 29, last successful checkin: 0 seconds ago
service: bridgeaudiod, total successful checkins since load (290 seconds ago): 30, last successful checkin: 0 seconds ago
service: logd, total successful checkins since load (290 seconds ago): 29, last successful checkin: 0 seconds ago

Debugger message: panic
Memory ID: 0x6
OS release type: User
OS version: 19P744
macOS version: 21D62
Kernel version: Darwin Kernel Version 21.3.0: Wed Jan  5 20:03:37 PST 2022; root:xnu-8019.80.24~19/RELEASE_ARM64_T8010
Kernel UUID: 5C49B2CB-9833-3D8A-8E98-E628559A4D1E
iBoot version: iBoot-7429.81.3
secure boot?: YES
x86 EFI Boot State: 0xd
x86 System State: 0x0
x86 Power State: 0x0
x86 Shutdown Cause: 0x5
x86 Previous Power Transitions: 0x405060400
PCIeUp link state: 0x89271614
Paniclog version: 13
Kernel slide:      0x00000000201f4000
Kernel text base:  0xfffffff0271f8000
mach_absolute_time: 0x1abd4138c
Epoch Time:        sec       usec
  Boot    : 0x626d2d51 0x000d6866
  Sleep   : 0x00000000 0x00000000
  Wake    : 0x00000000 0x00000000
  Calendar: 0x626d2e77 0x00089b70

Zone info:
Foreign   : 0xfffffff06e1b8000 - 0xfffffff06e1c8000
Native    : 0xffffffe0005fc000 - 0xffffffe6005fc000
Readonly  : 0xffffffe0e6c60000 - 0xffffffe133924000
Metadata  : 0xffffffeb00b0c000 - 0xffffffeb04cc4000
Bitmaps   : 0xffffffeb0230c000 - 0xffffffeb02590000
CORE 0: PC=0x00000001a16d319c, LR=0x00000001a16d17d8, FP=0x000000016fac5a50
CORE 1 is the one that panicked. Check the full backtrace for details.
Total cpu_usage: 13973766
Thread task pri cpu_usage
0xffffffe3006e1be0 watchdogd 97 0
0xffffffe3012ec000 bridgeaudiod 37 0
0xffffffe3012de2d8 watchdogd 31 0
0xffffffe3012f8df0 nfcd_relay 31 482365
0xffffffe3006c8df0 kernel_task 0 1953555

Panicked task 0xffffffe3e6bd3768: 190 pages, 3 threads: pid 36: watchdogd
Panicked thread: 0xffffffe3006e1be0, backtrace: 0xffffffeb0f0430c0, tid: 876
		  lr: 0xfffffff0279eb6bc  fp: 0xffffffeb0f043100
		  lr: 0xfffffff0279eb44c  fp: 0xffffffeb0f043170
		  lr: 0xfffffff027b27008  fp: 0xffffffeb0f0431f0
		  lr: 0xfffffff027b261d0  fp: 0xffffffeb0f0432a0
		  lr: 0xfffffff0280515fc  fp: 0xffffffeb0f0432b0
		  lr: 0xfffffff0279eb160  fp: 0xffffffeb0f043640
		  lr: 0xfffffff0279eb160  fp: 0xffffffeb0f0436a0
		  lr: 0xfffffff028b4b488  fp: 0xffffffeb0f0436c0
		  lr: 0xfffffff02856d6ec  fp: 0xffffffeb0f0436e0
		  lr: 0xfffffff02856d0e0  fp: 0xffffffeb0f043700
		  lr: 0xfffffff027fcd128  fp: 0xffffffeb0f043760
		  lr: 0xfffffff02856c5fc  fp: 0xffffffeb0f043880
		  lr: 0xfffffff027fd6f10  fp: 0xffffffeb0f043a20
		  lr: 0xfffffff027aee308  fp: 0xffffffeb0f043b40
		  lr: 0xfffffff0279f1734  fp: 0xffffffeb0f043bd0
		  lr: 0xfffffff0279c6cdc  fp: 0xffffffeb0f043d00
		  lr: 0xfffffff0279dde78  fp: 0xffffffeb0f043d90
		  lr: 0xfffffff027b1b8e8  fp: 0xffffffeb0f043e60
		  lr: 0xfffffff027b26598  fp: 0xffffffeb0f043f10
		  lr: 0xfffffff0280515fc  fp: 0xffffffeb0f043f20

It usually occurs within 5 minutes after booting up. The mouse suddenly freezes for a few seconds, then the system shuts down. Restarting results in the same issue. Other observations: 1. TouchBar not visible 2. No known damage 3. No damage detected in Apple Diagnostics and Disk Utility. 4. Same issue in safe mode.