I have been running Ubuntu inside Parallels on an M1 MacBook for several years now, and am in general quite happy with it. What makes it less than ideal is e.g. that only OpenGL 3.3 is supported in Linux guests (Windows guests get 4.1), but for some reason the Vulkan support is actually quite good, and allows me to run the graphics tools I need. Having most AppImages out there unavailable on ARM64 is also sometimes a problem, but that's not Parallels' fault.
Parallels has some glitches (graphical flicker when it runs low on guest memory, less than stellar trackpad scrolling) but is otherwise very stable. I like that I have access to Linux and macOS at the same time, the other side is just a 3 finger swipe away, and cut-n-paste and shared folders work. Sound and video all work, though for things like zoom calls I tend to use the macOS side. All runs happily together with 16GB RAM for each side (and I often have both xcode and android studio open on the macOS side while compiling large projects on the Linux side).