I am not using M1 yet, but have been running VMs on Macs for over 13 years (in the last 10 years, only with virtualbox) and it has been a great experience so far.
As virtualbox will not ever come to the Apple Silicon architecture, I have been looking at UTM. It seems to be improving fast. My first attempt maybe 6 months ago failed. I tried again last week, and I managed to get a functional working environment quite quickly. It also allows you to download existing VMs, including some for Arm64, so I would just use this as a starting point... At least, this is my plan when one of my Intel Macs needs replacement and my only choice is Apple Silicon.