It's still under heavy development (see https://asahilinux.org for more details). Developer Alyssa Rosenzweig has been doing great work on getting Linux graphics to work on the M1; just a few days ago she announced that she got GNOME to work on the M1, though without graphics acceleration (https://twitter.com/alyssarzg/status/1429579145827127296). It's still going to be a while until Linux on the M1 reaches daily-driver status.
As far as I know there has been progress made to add native linux support for the M1 (the work done by the people at Asahi Linux comes to mind) but there's still a long way to go. However virtualization isn't too bad, I've been using UTM and their prebuilt images and that's worked for most of my needs so far.
