Here's me playing Bedrock Minecraft on my M1 Air with all video settings set to max, 70 degree field of view, and Render Distance at 32 chunks.
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This is the newest version of Minecraft. I own it on iPad, so I just downloaded the .ipa file from my iPad and it installed fine on my Mac. It runs very fast, and allows up to an 80 chunk draw distance. I used a PS4 controller to play. It can connect via bluetooth or USB.
This isn't perfect yet, as it should play full screen/res vs. playing in a window. But my point is that it will be trivial for Microsoft to update this to work perfectly on this Mac.
Let me know if you have any questions or if there is a particular thing you would like to see me do like connect to a server or download something from the store (all of which work). Or I can play multiplayer if you wish to see that.
Sorry there is no sound in the recording. It doesn't seem like the macOS built in screen recorder can capture sound. I can assure you all Minecraft sounds are working fine.