i’ve used SwitchResX for years to create/use custom resolutions. though i don’t have an M1 mac (on order now). maybe that’s another way of achieving this?
BetterDummy simply navigates around the whole problem by creating Virtual Displays that are mirrored to the main display. This is in one regard inferior, since this is inherently a workaround but on the other hand can work on-the-fly and all possible resolutions are instantly available and accessible via System Preferences/Displays.