Let $d$ be the dimension of the manifold $M$. For $n \geq 2$, I will prove that the symmetric power $SP^n(M)$ is a manifold with boundary for $d=1$, a manifold for $d=2$, and a non-manifold for $d \geq 3$.
For disjoint open balls $U_1,\ldots,U_k$ in $M$ and positive integers $n_1,\ldots,n_k$ with $n_1+\cdots+n_k=n$, we have an open subset
$$V = SP^{n_1}(U_1) \times \cdots \times SP^{n_k}(U_k) \cong SP^{n_1}(\mathbb{R}^d) \times \cdots \times SP^{n_k}(\mathbb{R}^d)$$
of $SP^n(M)$. These cover $SP^n(M)$. It is thus enough to prove that $V$ is a manifold with boundary for $d=1$ and a manifold for $d=2$, and for some choice of the $n_i$ a non-manifold for $d \geq 3$. In the arguments below, I will identify $SP^m(X)$ with the set of unordered sequences $\{p_1,\ldots,p_m\}$ of not necessarily distinct points in $X$.
We start with $d=1$. In this case, it is enough to prove that $SP^m(\mathbb{R})$ is a manifold with boundary for all $m \geq 1$. In fact, generalizing Ben McKay's answer we have a homeomorphism
$$\mathbb{R} \times [0,\infty)^{m-1} \cong SP^m(\mathbb{R})$$
taking $(x,c_1,\ldots,c_{m-1}) \in \mathbb{R} \times [0,\infty)^{m-1}$ to the collection of points
$$\{x,x+c_1,x+c_1+c_2,\ldots,x+c_1+c_2+\cdots+c_{m-1}\}$$
in $\mathbb{R}$. The point here is that unordered collections of points in $\mathbb{R}$ actually have a canonical ordering from smallest to largest.
We now handle $d=2$. In this case, it is enough to prove that $SP^m(\mathbb{R}^2)$ is a manifold for all $m \geq 1$. In fact, we have a homeomorphism
$$SP^m(\mathbb{R}^2) \cong \mathbb{R}^{2m}.$$
To see this, identify $\mathbb{R}^2$ with $\mathbb{C}$. For $$\underline{a}=(a_1,\ldots,a_m) \in \mathbb{C}^m,$$
let
$$f_{\underline{a}}(z) = z^m + a_1 z^{m-1} + \cdots + a_{m-1} z^1 + a_m \in \mathbb{C}[z].$$
The desired homeomorphism
$$\mathbb{C}^m \cong SP^m(\mathbb{C}^m)$$
then takes $\underline{a} \in \mathbb{C}^m$ to the unordered set of roots of the monic degree $m$ polynomial $f_{\underline{a}}$.
The remaining case is $d \geq 3$. Here it is enough to find some $V$ as above that is not a manifold. Below I will prove that $$SP^2(\mathbb{R}^d) \cong \mathbb{R}^d \times Cone(\mathbb{RP}^{d-1}).$$
This will imply that
$$SP^2(U_1) \times SP^1(U_2) \times \cdots SP^1(U_k) \cong \mathbb{R}^d \times Cone(\mathbb{RP}^{d-1}) \times \mathbb{R}^d \times \cdots \times \mathbb{R}^d$$
This is not a manifold (for instance, think about local homology). Here we are using the fact that $d \geq 3$ since
$$Cone(\mathbb{RP}^1) \cong Cone(S^1) \cong \mathbb{R}^2.$$
It remains to prove that
$$SP^2(\mathbb{R}^d) \cong \mathbb{R}^d \times Cone(\mathbb{RP}^{d-1}).$$
This homeomorphism takes an unordered collection $\{p,q\}$ of points in $\mathbb{R}^d$ to the pair
$$(\frac{p+q}{2},z) \in \mathbb{R}^d \times Cone(\mathbb{RP}^{d-1}),$$
where $z$ is as follows:
- The cone point if $p=q$.
- Using homogeneous coordinates for projective space, the point in the cone that is $dist(p,q)$ from the cone point in the direction $[p-q] \in \mathbb{RP}^{d-1}$.