Unless you already have a Time Capsule, I would set up Arq to use as a TM replacement, as it offers much more control over how and when you backup.
As a new Arq user, I have the subscription (bought today) as well as a cloud backup to Wasabi. I also have a 2TB Time Capsule that I still use for TimeMachine backups for my M1 MBA. And if that all isn't enough, I also have CCC backing up once a day to an attached drive on my Mac mini. That way, I don't have to connect any external drives to my M1 MBA, in order to backup. When CCC is backed up to a remote Mac, it only backs up the user files, which is fine. You really don't need a backup of the OS itself.
Now that I am using Arq's great features, I really don't anticipate using CCC much moving forward.