I never thought Wine/Crossover can work on M2. Isn't the M2 CPU totally different from what ordinary Windows apps are meant to be ran on? I know there there is an Arm Windows version and apps built for it but there aren't many.

macOS runs x64 executables just fine through Rosetta so I don't see why Wine couldn't make use of that hardware acceleration.

It's also possible to only simulate the entrypoints through Rosetta and then execute native aarch64 code from there. On Linux https://github.com/ptitSeb/box64 does exactly that, for example. However, with the performance Apple has been able to squeeze out of Rosetta, I'm not sure of that workaround is even necessary.