I found out about this issue on Github and I learned that the M1 chip does not support AVX (which is indeed documented) and that Homebrew developers assumed that all CPUs supported by Big Sur were compatible with AVX instruction set (which is true except for the M1 under Rosetta 2).
I found it interesting to see how they rapidly corrected the situation by merging a partial revert. I also found their CI infrastructure interesting to watch while it was live-testing the commit.