Yes. It will work on all M1 Macs (which don't have either T1 or T2 chips. 😉
Officially, Erase all Contents and Settings works on all Macs with Apple Silicon or T2 chips (sorry, not T1):
macOS Sequoia brings effortless window tiling, web browsing with fewer distractions, new iPhone Mirroring, and support for Apple Intelligence.
www.apple.com
unfortunately