Found the answer based on search:
Connect-PnPOnline -Url $SiteURL -UseWebLogin
Define Query to Filter
$Query= "<View Scope='RecursiveAll'>
<Query>
<Where><Eq><FieldRef Name='FSObjType' /><Value Type='Integer'>1</Value></Eq></Where>
<OrderBy><FieldRef Name='Modified' Ascending='FALSE' /></OrderBy>
</Query>
</View>"$ListItems = Get-PnPListItem -List $ListName -Query $Query
Write-host "Last Modified Item Id:"$ListItems[0].Id