Performance of KDE Wayland VM at 4K

Hi,
I'm planning to use Parallels with all my base M4 Macbook Air can give me to run a Linux VM. This VM will probably be either Arch or Manjaro ARM, and run KDE Plasma with Wayland. It will have to run on my external monitor which is 4K and has a refresh rate of 75Hz.
I won't be playing games, but the whole UX should feel like bare metal, especially streaming videos at 4K@60Hz. Other use cases would not require more CPU/GPU power than that I assume.
Other necessities:
- use webcam and other devices and USB sticks attached to a USB hub
- use everything that is connected via Bluetooth to the Macbook like headphones, mouse, keyboard
Can Parallels do this? Thank you!