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Should my mother give this caregiver a 1099M and will this affect my mother's social security?

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Yes, she should give the caregiver a 1099 because the caregiver is required to report the income and pay taxes on it. Since they are given a 1099 as an independent contractor, they are responsible for paying their self-employed social security taxes. 1099s are do to the payee by the end of this month and a copy of it due to the IRS by the end of February.

The downside of this is that money paid to a caregiver who is an independent caregiver is a tax deduction like it would be if the caregiver was hired through a caregiver agency. This is what I ran into with a CPA when dealing with my mother's taxes.

That is amazing that last year was the first year that your mom had to pay for a caregiver!
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