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 Tahoe with a new design, more ways to work seamlessly across devices, and new features to turbocharge productivity every day.
www.apple.com
unfortunately