I’ve done something similar to what you’re describing on my Macbook pro m1 with 32GB of RAM. In terms of RAM, my experience is that the best configuration is to give less to the VM and leave more on the host, which is sort of counterintuitive in a way, but it does make sense because after all, if you’d just normally use your Mac, you’d never push it to 100% RAM or disk usage. So leaving some reserves is key, but aside from that, go crazy, you’ll be surprised by how much the m1 chip can handle.
Leo