This is maybe what UTM uses in the latest releases to virtualize macOS on ARM64? Works very well for me so far. https://github.com/utmapp/UTM/releases

If you’re looking for a lighter weight vm (microvm almost), check out lima and colima.

It’s not clear to me what colima[0] adds to lima[1]. Does anyone know?

[0] https://github.com/abiosoft/colima

[1] https://github.com/lima-vm/lima