Yeah, that's a problem - you can't use Direct3D with CrossOver. You can also get round it by going to the MFA's Properties/Runtime Options/Display options... and change the Display Mode to Standard.
Another problem I had using CrossOver was with the sound when using MP3 music. The preview is very choppy and unlistenable, but it's ok when you build the app and run it on a device.
I read that Parallels 16 for M1 Macs is now available through their technical preview program. https://www.macrumors.com/2020/12/17...eview-program/