I had the same problem starting today with my new M1 MacBook Air, and ultimately I discovered the problem (for me, at least) lies in running the app natively; I fixed it by forcing both Alfred and Alfred Preferences to run under Rosetta 2. Here's how:
Open your Finder and navigate to Applications, find Alfred and right-click > "Get Info".
Check the box that says "Open using Rosetta".
Right-click on the Alfred app again, then click "Show Package Contents".
Navigate to Content > Preferences.
Right-click on the Alfred Preferences app, select "Get Info", and check the box that says "Open using Rosetta".
Launch Alfred.
This won't be of any use to anyone encountering this issue on an Intel Mac, but I figured I'd share my solution since this is the only forum thread about the issue I've seen. Hope this helps!