Getting there is a bit messy, but it works. I won't bury the lede: It does run Intel apps. I put it to the test on my M1 MacBook Air.
Would it run classic Intel-based Windows apps, or would it just be a version of Windows devoid of most of Windows enormous library of Intel-based software? This week, I got my hands on Parallels Desktop 17. Even then, expectations were low because, as ZDNet reported, Microsoft's license doesn't support running Windows for Arm on Macs. Expectations, however, were that the M1 Parallels implementation might run Windows for Arm but not Intel Windows applications. When the M1 Macs came out, Parallels announced it could port their virtualization software to Apple Silicon. I found the ability to switch between Windows Excel and PowerPoint (which still, to this day, have some features not found on the Mac) and my Mac-based graphics and video applications to be a huge win. I've been running various versions of the Parallels virtualization solution on my Intel Macs since I repurchased my 2013 iMac in the day. Apple's Mac lineup can be confusing as the company transitions from Intel processors to its own Apple Silicon processors.