Your testing points to a substantial difference between macOS Tahoe and Sequoia on your M1 MacBook Air, but it does not yet establish that 8 GB of memory is the bottleneck.
Apple officially supports the M1 MacBook Air (2020) on macOS Tahoe, so your configuration is within Apple's supported hardware range. (Apple Support)
The most significant part of your testing is that the same physical Mac is smooth and responsive on Sequoia but consistently sluggish on Tahoe. You have also tested Tahoe after resetting the Mac and setting it up as new, and you allowed substantial time for indexing to finish.
This is important because restoring or migrating from a previous macOS installation can transfer applications, user accounts, settings, and other data.
Consequently, a migrated environment can potentially reintroduce an application, setting, or other component that could contribute to a problem that would not occur on a genuinely clean installation.
Apple documents what Migration Assistant transfers here. (Apple Support)
Because you also tested Tahoe as a new installation without restoring your previous environment and still experienced the same sluggishness, the problem cannot reasonably be attributed simply to something inherited from your Sequoia installation. That strengthens the evidence for a Tahoe-specific issue on this particular Mac/configuration.
The approximately 6 GB of memory used after startup should not be treated as proof that the 8 GB is exhausted. Apple explains that macOS uses available memory efficiently, including for cached files. The relevant measurements are Memory Pressure, Swap Used, and compressed memory. Persistent yellow or red memory pressure, particularly while the lag is occurring, would provide much stronger evidence that the 8 GB configuration is contributing to the problem. (Apple Support)
Your Liquid Glass explanation is possible, but it should remain a hypothesis rather than a conclusion. Tahoe's redesigned interface changes the graphical workload, but your observations alone cannot establish that Liquid Glass itself is consuming enough GPU or memory resources to cause the system-wide slowdown.
A useful test is to enable Reduce Transparency and Reduce Motion in System Settings → Accessibility → Display. If responsiveness improves substantially, that would provide evidence that Tahoe's visual effects are contributing to the problem. It would not, by itself, prove that GPU usage or 8 GB of memory is the underlying bottleneck.
The 81% battery health figure also does not, by itself, explain the Tahoe-versus-Sequoia difference. It is worth checking whether macOS reports Normal or Service Recommended battery health rather than treating the percentage alone as evidence of a performance problem.
The most useful test now is to open Activity Monitor while a lag spike is actually occurring. Check Memory Pressure and Swap Used, but also CPU, GPU, and Disk activity and whether a particular process becomes unusually active at the same time. This can help distinguish memory pressure from CPU, graphics, storage, or another system-process issue.
Because the M1 MacBook Air's unified memory is not user-upgradable, sustained memory pressure would be significant evidence that the 8 GB configuration is a genuine limitation for that workload. Conversely, if Memory Pressure remains green and swap activity is low while the system is lagging, the evidence for 8 GB being the cause becomes considerably weaker.
Therefore, the most accurate conclusion is: 8 GB may limit the performance headroom of the M1 MacBook Air under Tahoe, but your current evidence does not prove that it is the bottleneck. What your testing demonstrates much more clearly is a substantial Tahoe-versus-Sequoia performance difference on the same Mac. Because the problem also occurs on a clean Tahoe installation, migration from Sequoia is unlikely to be the explanation. Activity Monitor measurements during an actual lag spike are needed to determine whether memory pressure, graphics, CPU, disk activity, or another Tahoe process accounts for the difference.
Apple's relevant documentation includes Transfer to a new Mac with Migration Assistant, which explains what Migration Assistant transfers, and Restore your Mac from a backup, which explains restoring information from a Time Machine backup. (Apple Support)