Installing Windows on your Apple Silicon Mac is going to be a challenge as Microsoft has said the ARM version of Windows 11 isn't a “supported scenario” is. There will be no official support for M1 Macs, neither through virtualization nor by installing it directly on the hardware. Microsoft wouldn't call it illegal yet if you try, but it does make it a lot harder for companies like Parallels and VMware.
Parallels has already got Windows support working on M1 Macs, even without help from Microsoft .
VMware was still hesitant and does offer a beta for M1 Macs, but there is no Windows in it. The x86 versions of macOS and Linux are also missing. VMware mentioned the reason that there is insufficient clarity at Microsoft. That clarity is now here, but not in the direction Apple users had hoped.
Cat and Mouse Game
For months now, users have been able to use Windows Insider builds for ARM architectures. This made it possible to use virtual machines with Windows 10 and 11 on your Apple Silicon Mac. But that could soon come to an end. Users report that recent updates to the Insider build of Windows 11 are throwing errors in Parallels because of hardware incompatibility. Parallels solved it in this case, but if Microsoft doesn't want to allow Windows 11 VMs on Apple Silicon, it might not be worth trying to keep finding solutions.
Previously, noted Microsoft blogger Paul Thurrott claimed that Microsoft would announce official support for M1 Macs in September. He had gotten that information from his sources. But that prediction now turns out to be complete nonsense.