I am so confused between MBA(16gb,512) or MBP14 base model.
I won't be doing any creative work, will be doing casual stuff and studying for cyber Sec/cloud computing, hence will need to run VMs. Please suggest which one should I go for as price is not really an issue for me.
Firstly you need to do some research on what VM's you need to run. With the new Apple Silicon chips your options are more limited than used to be the case with Intel Chips. Parallels has support for Windows on Arm and Mac OS, however due to the different architectures on Apple Silicon it is not currently possible to run x86 Windows on an Apple Silicon Mac.
It should also be noted that running Windows on Arm is possible, but the licensing is a bit of grey area, Microsoft's position at the moment is Windows on Arm is not officially supported on Apple Silicon. That being said I am currently running WfA on a M1 Pro MBP under parallels and I have successfully applied a Windows X86 licence to it, and it appears to run quite happily at the moment.
With VM's you should definitely be looking at 16GB of RAM, as the memory is shared between Mac OS and the VM.
In terms of performance the MBA should be fine, as I have been using a M1 MBA 16GB with a WfA VM for about a year and it ran very well.
I don't think you will see a lot of performance benefit from the applications you are running with the MBP, but the MBP 14" M1 Pro gives you a lot of other significant benefits, a screen to die for, better speaker system and studio quality Mics, a better range of ports and Apple's MagSafe power connector. The Web Cam is also much better. The only advantages of the MBA over the MBP is battery life, and it is a lot lighter in your backpack.
If you see value in the above then go for the MBP, I suggest you go to an Apple store if you can and see both in person.