Apple might stop users from side loading unsupported iOS applications on their Apple silicon Mac with macOS Big Sur 11.2. Currently Apple silicon Mac’s allow users to run iOS and iPad applications on their Mac but developers can opt out of allowing these apps to be installed on the Mac.
Several developers have chosen not to include their apps such as Netflix and Hulu which are not available in the Mac App Store, However, with the current versions of Mac OS, you can manually install iOS apps such as Netflix Instagram and Facebook. Mac by using their respective IPA files downloaded under a valid Apple ID.
But based on internal code (discovered by 9to5Mac) that is shared between iOS 14.4 and Mac OS big sir, 11.2. Apple will implement a new system that will block these iOS apps from running on the Mac. So this means you'll only be able to install iPhone and iPad apps on your M1 Mac when they're available in the Mac App Store.
No side loading will be supported. So if a developer opts out of making their app available in the Mac App Store you're out of luck. The code is related to the APIs that manage the digital rights management (DRM) protections of the operating system.
As of right now Apple has not yet flipped this switch and you can still side load applications but this is a change that Apple will likely enable remotely once the update is available for all users.