One can use Vagrant and VMware (instead of Virtualbox) on ARM M1. VMware fusion is free and Hashicorp has released the VMware vagrant plugin for free as well.
As well as the `--default-owner-` switches, I had some file permission issues on the Docker side. I ended up using `setfacl` to enforce really permissive permissions on `~/mysite` on the VM side, otherwise some Docker containers would complain. It turns out Docker for Mac fakes some file permissions, which is why it wasn't a problem before.
Other than that, it mostly just worked! Feel free to get in touch if you have more specific questions.
A few months ago I switched to a new setup on my M1 Max: running a Ubuntu VM in UTM (https://mac.getutm.app/), and installing Docker there.
I use Mutagen (https://mutagen.io/) for syncing files between macOS and the VM, which works really well.
There is a 10x-20x speed improvement running a large PHP (Drupal) project through the VM than Docker for Mac.