macbook pro m1 ship virtualization

The windows application has to be able to run in Windows ARM 64(certainly any windows 32 bit apps cannot). Not all of them can. Parallels is an app. It makes a software version of the Intel chip, and then it uses that as if it were a real hardware chip. This makes it inherently slow, but luckily the new M1Pro and M1max is insanely fast, so if the Windows app can run in ARM64, and its not something like a game or a really really really intensive graphic application, you may be able to run windows adequately.

The next version of the M1 with maybe 20 cores or the MacPro version with its expected 40+ cores, will probably do fine. Those versions are not out yet as of 11-8-21.

there is no Virtualization enabled in M1 BIOS, unlike Intel

You just simply run Parallels, Fusion, UTM

Please be more specific in your definition of "virtualization". What is it you are trying to accomplish?