Kernel extensions are used to add features at the kernel-level and access parts of the OS that are inaccessible to regular programs. Currently, they are only supported by Intune for Intel-powered macOS devices.
If you are using the kernel extensions settings, consider excluding macOS devices with Apple Silicon chips from receiving the kernel extension profile, as these devices refuse to install a profile if the mobile device management (MDM) policy doesn’t have a bootstrap token escrowed. You can do this by adding a group of devices to the “Exclude groups” section in the “Assignments” step of creating a profile.
Example of the "Add groups" assignment option for macOS Extensions
For more information on system extensions in Intune: