You can't create an Intel virtual machine – as opposed to an emulator – on an Apple Silicon based Mac. A virtual machine gets much of its speed by running the machine code instructions of the "guest" machine natively on the "host" CPU, until the "guest" does something like trying to access virtualized hardware.
So if you use Parallels Desktop on an Apple Silicon Mac, "Only Arm versions of operating systems are supported."
https://kb.parallels.com/124223
That means you can't use a Parallels Desktop VM on an Apple Silicon Mac to run any version of macOS prior to Big Sur, and I don't see Big Sur on the supported list, either. The vendor says that Monterey, Ventura, and Sonoma are supported guest operating systems (though, to the best of my knowledge, Sonoma isn't out yet).
There is a project called QEMU whose goal is to support both virtualization and emulation. I don't know whether it has support for emulating an Intel macOS guest environment on top of an Apple Silicon host environment. But the overhead of running an entire operating system in emulation would likely be horrendous. Anyone who remembers how bad Windows emulation used to be in the SoftWindows / Virtual PC days could probably fill you in.