In practice I’ve found it more practical to create cloud VMs although I’ve traditionally used run a Linux and Windows VM on MacBooks. Or just buy a tiny server for a few hundred bucks and leave it plugged in at home and remote into that.
There’s too many issues around ARM support and the fact that other Linux and Windows machines generally won’t be running ARM. Apple Silicon also has expensive memory upgrades.
Remote Desktop to a virtualized Windows 10 running on VMWare ESXi is what I replaced VMWare Fusion with even before I got this M1. It's unlikely I'll ever upgrade now.
This only works if you have a good internet connection. The use case I've always had for VMWare Fusion is that I need to use a Windows app, as if it were local, with my local, multi-gig, files available.
Remote Desktop works surprisingly well over low bandwidth. I’ve done it at times using my unlimited hotspot data when I only had 3G speeds