On an Intel Mac it was possible and legal to run a "Mac-on-Mac" VM, i.e. to run macOS within a virtual machine hypervisor running on macOS. Does any product or demonstration exist for the same on an Apple Silicon (M1) Mac?
For its part, VMWare's most recent public update included a bullet point
macOS VMs are not in scope in the short term. There are challenges there which will require Apple to work with us to resolve.
with no further explanation to be found in the remainder of their blog post. Has their competitor Parallels had better luck? Or, if the "challenges" are more of the contractual or simply "polished user experience" sort, perhaps a more independent hobbyist or hacker has overcome them at least in a proof-of-concept fashion?
To be clear in this question I am not specifically asking if it's possible to run an older Intel version of macOS on an ARM processor (which admittedly would fulfill similar purposes but likely in a less-performant way), but mostly whether there is currently any way to run an Apple Silicon macOS guest under an Apple Silicon macOS host?