I’m using a M1 machine. Is that an issue?

no, M1 works, the issue is with the asyncio extra in sqlalchemy, check this comment https://github.com/PrefectHQ/prefect/issues/5044#issuecomment-940035918 you can do:

pip install sqlalchemy[asyncio]

even though you shouldn't have to do it, can you try in a new virtual env?