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Virtualization is possible on the M1, it is not possible on the Developer Transition Kit which uses a A12Z chip without Virtualization extensions.

It can only virtualize ARM, of course.

That’s great news! I was disappointed since I read the discussion on github. I clearly misunderstood. Thanks!

I wouldn’t really expect x86 virtualisation instructions to be supported under Rosetta.

You’re going to need an ARM version of Docker, running ARM Linux kernels, and ARM userland Linux binaries.

It is possible, but docker is not yet ported. The docker images you run will have to be ARM images, as docker cannot emulate x86. Docker supports multi-arch images with their buildx infrastructure, so this situation will fix itself over time. Most of the official base images already support ARM.

Virtualisation within the x86 emulation isn't possible. So you can't just run the x86 build of parallels and have it work. But it should be possible to build a new dedicated ARM version of parallels.

It is possible