Today it is not possible to emulate X86 OS (Mac, Windows) in a virtual machine on Mac M1.
Vmware guys said:
Well, the short answer is that there isn't exactly much business value relative to the engineering effort that is required, at least for the time being. For now, we're laser focused on making Arm Linux VMs on Apple silicon a delight to use.
So, to be a bit blunt, running x86 operating systems on Apple silicon is not something we are planning to deliver with this project.
Is it a future possibility for Parallels? Are you studying to implement this feature or is it out of your plans?