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VMs work. Qemu is working with patches. You have to build it though. None of the releases seems to be patched yet. There is an early preview of Parallels. Both Linux and Windows on Arm are working. Docker has an early release as well. There are few prebuilt projects on Github too:

https://github.com/evansm7/vftool

https://github.com/KhaosT/SimpleVM

https://github.com/ubenmackin/ACVM

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Since I installed it, Parallels preview has caused me nothing but purple-screened crashes at random. These might be caused by conflicts within the macOS beta I’m running or between running both Parallels preview and Docker for Mac preview at the same time. My laptop went back to being stable only when I quit both, though it seemed relatively stable with just Docker for Mac running previously. It’s easy enough to suggest that any crash is a bug Apple should fix, and hopefully will fix within this patch cycle. And it’s worth pointing out, I am running a dev beta release, so it’s more likely I’ll encounter such problems. Reviews of Parallels running Windows on ARM do not mention the issues I’ve had, for example, but this kind of frequent crashing is rare on my Intel MacBook performing the same tasks. But the M1 MacBook still impresses me with its speed under load, it feels nice and snappy even when running heavier IDEs with lots of background processing.

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