I own the latest versions of both Parallels Desktop and VMware Fusion since I used them for development on both Intel and Apple Silicon. I have used VMware Fusion since version 1. But today, there is no question that the best option for paid VMs is Parallels Desktop, especially on Apple Silicon. It is superior in the feature set, ease of use, and performance.
For free macOS guest virtualization, I would choose Howard Oakley's
Viable, While you are there, look at all the other free utilities Howard keeps crafting.
macOS virtualization on Apple Silicon can be high-performance. But it is seriously crippled in not supporting Apple ID-related services, eg, no App Store, no iCloud.
BTW, Parallels Desktop superbly supports Windows 11 (ARM64.) This is now officially supported by Microsoft!