Not too long ago, Qualcomm bought NUVIA, a designer of high performance arm64 cores that can theoretically compete with Apple cores on perf. Arm pretty much immediately sued saying that the specifics of the licenses that Qualcomm and NUVIA have mean that cores developed under NUVIA's license can't be transferred to Qualcomm's license.[0] Qualcomm obviously disagrees. Whatever happens those cores as they exist today are going to be stuck in litigation for longer than they're relevant.
Qualcomm's proposal smells strongly like they're doing the minimum to strap a RISC-V decoder to the front of these cores. For whatever reason the seem hell bent on only changing the part of the front end that's the 'pure function that converts bit patterns of ops to bit patterns of micro-ops'. Arm64 is only 32bit aligned instructions, so they don't want to support anything else.
At the end of the day, the C extension really isn't that bad to support in a high perf core if you go in wanting to support it. The canonical design (not just for RISC-V but high end designs like Intel and AMD too) is to have I$ lines fill into a shift register, have some hardware on whatever period your alignment boundary is that reports 'if an instruction started here, how long is it', and a second stage (logically, it doesn't have to be an actual clock stage) that looks at all of those reports generates the instruction boundaries and feeds them into the decoders. At this point everything is also marked for validity (ie. did an I$ line not come in because of a TLB permissions failure or something).
[0] - https://www.reuters.com/legal/chips-tech-firm-arm-sues-qualc...