That computer only supports a single external display.
MacBook Air (M1, 2020) - Technical Specifications
There is no way to increase the number of first-class, hardware-supported display outputs. There are workarounds using DisplayLink or similar technologies. Those create virtual screens in software, and send updates to an external "stunt box" that decodes the updates to provide DisplayPort, Mini DisplayPort, or HDMI outputs.
Display quality may suffer – especially if your application is one like gaming, that involves lots of motion; lots of fast-changing content. If a macOS update breaks the software that supports multiple displays, you will be dependent on a third party (such as the adapter vendor; or Synaptics) for a fix. If you stream video from some site like Netflix that uses DRM, you might find that the video is blanked out on the extra displays, or possibly even blanked out on every display as long as the extra ones are attached.