Apparently the Apple Silicon macs don't have the capability of running 32bit binaries. Since this software is abandoned, it's not like a longer support window would have given them time to recompile the drivers.
Whole thing sorta smells like Apple trying to further assert the dominance of AArch64, what with their insane stake in the ISA and it's eventual dominance. Not a terrible thing inherently, but the push to depreciate 32-bit hardware and software alike was pointless. 32-bit ARM can (and should) live alongside AArch64 as an ISA. From what I understand, the M1 even has secure 32-bit emulation mode built-in, without any OS functionality to leverage it.
Whatever Apple does, it's hard for developers to treat the Mac like a regular development target now. Besides the ISA change, the push for Metal-agnostic GPU pipelines has left developers scrambling. Massive open projects like Blender didn't even have an Apple Silicon strategy until Apple sponsored one. It's a bit of a mess, and kinda tragic that Apple is pointlessly complicating cross-platform development.
I'm sure it's costing them dearly, but there's plenty of niche and industrial hardware like this that lasts much longer than a generation of operating systems, and there's no alternative. Linux pays lip service to compatibility, but ABIs change constantly and it's easy to get stuck in dependency hell. MacOS X is... MacOS X.
It could be possible, with emulation, to run even 68000 binaries targetting the original Mac's operating system.
... if Apple cared. They very obviously do not.
What's wrong with 32-bit software? If you don't need more than 4GB of virtual memory, you've got half the memory footprint for pointers.
Even if each layer loses, say, 50% performance, the fastest 68k was only 75mhz.
(Although now that I think about it I think the handled the 68k/ppc transistion by just making everyone compile for both and slap em into the same binary. Memory is hazy.. it’s been at least 20 years since I’ve touched a classic mac)