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Installed openSUSE tumbleweed in M1 MBP in UTM. Surprisingly did not face any issue.
(sh.itjust.works)
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UTM is basically QEMU under the hood, which is well supported by Linux, so it's no surprise that it worked without any issues.
What would be interesting to know however, is what's the performance is like. You should run something like Geekbench on macOS and on UTM and compare the result, to see what the overhead is like.
I used to have issues when I tried to run fedora and ubuntu, hence the title.