I am currently working on an embedded system with 264Kb of RAM and 4Mb of flash. Do you think Lua could be used in such limited settings? I am also considering the berry scripting language [0].
Assuming your flash allows XIP (execute in place) so all that memory is available for your lua interpreter data, you should at least be able to run some code, but don't expect to run any heavy full applications on that. I don't know Berry but it sounds like a better fit for the scale of your device.
But sure, why not give it a try: Lua is usually easy to port to whatever platform, so just spin it up and see how it works for you!
Viper Bytecode emitter.
The experience I had there might be your best bet for something productive. That board came with a 'limited C-like compiler' (took a mostly complete subset of C syntax and transcribed it to ASM).
You'll probably be doing a lot of things like executing in place from ROM, and strictly managing stack and scratch pad use.
The 64MB of RAM and 8MB (I assume that's 64Mbit) of ROM allow for highly liberating things like compressed executable code copied to faster RAM, modify in place code, and enough spare RAM otherwise to use scripting languages and large buffers for work as desired.
If you compare this with what MicroPython uses, its requirements are well over an order of magnitude larger.