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The short summary is probably yes. I ran into the same issue, and it is obvious why it doesn't boot: It's because boot2docker is an AMD64 build, so it won't run on ARM. We would need a new updated version of boot2docker for M1.
I landed here following a link in the version comparison chart. Parallels is still advertising this Docker support. At some point this starts to run afoul of advertising law.
I can't run docker-machine on Apple M1.
So here is how VM created looks like:
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