We just open sourced our VMware plugin so yes, we will support M1 there. Note that VMware Fusion for personal use is now free so you can get that whole setup completely free when its ready.
Beyond that, we're looking into also writing a native Virtualization.framework implementation so you wouldn't need any 3rd party virtualization software at all. For headless Linux VMs we're confident this will work great.
We're also looking at qemu as an option because qemu also offers emulation for x86. Being written in Go, we can bind to qemu natively much more easily.
The point being: there will be multiple options!