Even when the arch matched, macOS was a bad platform for running containers. I'm not even sure you can call them "edge cases" because it was basic things like volumes not working right.
macOS is engineered for users and desktops, not servers and development. Apple's long history of blocking virtualizing macOS is a testament to this.
MacOS has been virtualizable in x86 since mac-on-x86 was released.
It also is engineered for development. Maybe not your particular type of development. Apple silicon isn't technically development-unfriendly, it's just apple silicon makes it less easy to do x86 development. But so does mips, sparc, ppc, and other architectures.
macOS is engineered for users and desktops, not servers and development. Apple's long history of blocking virtualizing macOS is a testament to this.