If Google Docs (and other GSuite products) are making Chrome freeze up/unresponsive after updating to Big Sur 11.1 on your Mac, here’s a possible fix:
(Re)Install Rosetta 2.
You probably have Offline Editing enabled, and it looks like Google Docs runs some x86 code, even if you’re using the M1 native Chrome app. This happens even if you’re online, suggesting that Google Docs isn’t entirely cloud-based?
Anyway, the problem is that the update uninstalls Rosetta 2 for some reason. Just install it again and you should be good to go!