I also have an M1 MacBook Air 2020 with 16GB of RAM and 512GB SSD, and I'm running Clickteam Fusion on it under Windows 11 on ARM in Parallels Desktop as well.
From what I found, a minimum of 16GB of RAM is a must as the Windows 11 on ARM installation in the Parallels Desktop creation wizard is selecting 6GB of RAM by default. So the base MacBook Air 2020 M1 model with the 8GB of RAM is not recommended for virtualization as it will only leave 2GB of RAM for the host Mac OS; the base 2020 M1 model also has a slower 256GB SSD compared to the much faster 512GB model, so take these details into consideration if you're having issues or if you're planning on buying a used/new MacBook with Apple silicon inside.
While it mostly works okay, I did found that after some time that I'm using the engine, it suddenly starts to behave slow and takes a second or two to respond to varies tasks, like when I'm trying to add / edit events, while it doesn't behave like this when I'm running the engine natively on my Windows 10 PC, which has an old Intel i7 6th gen processor on it by the way. But for most parts I find it a nice solution for the time being until if
the entire engine is redesigned in a 64-bit form, which could then be supported under the 64-bit only OS by Apple. But frankly, I don't think that this would be an easy task for Clickteam to do. Perhaps on Clickteam Fusion 3.
By the way, I was never able to scroll correctly with the MacBook trackpad in the virtual Windows 11, and found that an external mouse with a physical scrolling wheel is a must to either scroll in Windows under Parallels or in Clickteam Fusion in particular. And if you happen to use the Logitech Master MX series mouse which is quite popular, don't install its Options/Options+ app as this will make the scrolling in Window worse the same as using the trackpad. I just find it out and uninstalled the app and my Logitech Master MX 3s is finally scrolling correctly in both Windows and Clickteam Fusion.
Hope this helps.