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For anyone seeing this thread, you CAN use an M1 Mac to make a Catalina bootable USB drive for an Intel Mac. Just use dosdude's Catalina patcher: https://dosdude1.com/catalina/

It's extremely simple. Download the Catalina (I used Mist) installer, download dosdude's Catalina Patcher, and follow the instructions. Zero issues doing this on an M1 Mac running Sequoia and making a functioning Catalina installer for a Core 2 Duo Mac.
 
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