You could just use the beta of vmware fusion for apple silicon. I have only used Parallels for windows but it was such a great experience it would surely be fine for linux. Ubuntu multipass is a little finicky but it works fine as a remote deskop.
Parallels on M1 runs Win11 arm64 and Ubuntu arm64, those are as default installed templates, included inside VM installed AddOns. They are fast, because they do not emulate full CPU like amd64. Win11 arm64 can run amd64 software, it's CPU emulation stuff included in Win11 itself. So Win11 arm64 and run amd64 versions of MS Office, AmigaForever, etc amd64 software.
Yes, Parallels costs money, and if you run Win11 arm64, buying license for that also costs money.
UTM is Qemu.
Qemu can be compiled for macOS and Linux. I just today figured out how to compile Qemu on arm64 (actually using OrangePi that has 16 GB RAM and is arm64, similar like Linux on M1) so that it can run ReactOS. OrangePi has 8 cores (shown with "nproc"), so I used "make -j8" to make compiling use all cores, compiling faster:
Windows arm64 can not boot natively on M1/M2. There is no drivers for Windows to do that. It's just about running Win11 arm64 in Parallels in macOS.
Asahi Linux has modified kernel where is M1/M2 drivers, and remaining of Asahi is from Arch Linux. Asahi is installed like new version of macOS, notification about it goes to Apple, Apple just does not know it's actually Asahi Linux install. M1/M2 hardware has possibility for Linux by design, Apple most likely had some minimal Linux running on it for test purposes. There are also other FOSS distros for M1/M2, they use partially same packages and ways to make installing dual boot OS possible.
It's also possible to install macOS and Asahi Linux to external SSD drive and boot from there. But part of boot is still at internal drive, so it's not like boot at any computer yet.
