I have the M1 Air 16GB, and if I'm bimbling around in NodeJS and VSCode it runs fine, but if I need to do mobile work, the Xcode UI previews and Jetbrains IDEs cause it to run warm and throttle.
It's not slowing me down, but it does make it a bit uncomfortable to use on my lap.
I mostly use either VScode or Rubymine while working with Ruby (mainly using Rails) while running multiple docker containers (some setups required multiple projects to run in the same time)
If I don't do video calls or screen sharing the actual development works fine - with an external fan under the laptop. But in general it gets warm even if I don't do video calls.