Your flight would be entirely on Star Alliance carriers and thus in Munich’s terminal 2. You would be incoming on a Schengen flight and transferring to a non-Schengen flight. Furthermore, all flights are on the same ticket.
Terminal 2 is just one long building plus a smaller satellite building; the two are connected by an automated people mover underground. The main building is almost 1 km long which means an average walker should be able to get from one end to the other in around 15 minutes – plus, there are conveyor belts to speed up the process. The satellite is only around 600 m long.
The Schengen and non-Schengen parts of the airport are realised as different storeys within the same building. If you were coming from landside, the Schengen storey is the direct continuation of check-in/security while the non-Schengen storey is up one floor. There is one central immigration control at the centre of the main terminal building almost exactly where the APM from the satellite terminal arrives. Wherever your flight from Stockholm arrived, you will need to make your way to this central location, go upstairs, pass through exit immigration and then navigate your way to your departure gate on the upper storey (potentially taking the APM back to the satellite).
Munich airport advertises a minimum connection time of 45 minutes which is ample time to get from A to B within terminal 2 and the satellite.
As for your luggage, I have not yet come across any single-ticket connection that would require picking up and rechecking bags in Munich. The main reason this is done in places like the US, Canada or Japan is for customs: in these countries, customs inspections are performed at your first port of entry. In the EU, however, customs inspections are performed at your final destination. On your flight from Stockholm to Canada, your final destination is not in the EU so Munich airport wouldn’t care. On a potential return flight, your final destination is not in Germany so although customs are harmonised across the EU it is the Swedish authorities’ duty to examine, not the German ones’. Your luggage will most likely be checked through all the way from Stockholm to Toronto (where you will pick it up, pass Canadian customs and recheck it) on your outbound flight and if there is a return it will be checked all the way through to Stockholm on your return.
Of course, you can confirm this on check-in/luggage dropoff either by asking the person at the counter or by checking the luggage tag.