I am curious what people's choices would be if hard constrained by price:
-M3 w/10-core GPU, 8GB RAM, 256 GB SSD
-M2 w/8-core GPU, 16GB RAM, 256 GB SSD
-M1 w/8-core GPU, 16GB RAM, 512 GB SSD (which may only be available refurbished and so you get $100 back)
While I am guessing most people on Macrumors are not quite hard constrained on money and would just spend a few extra bucks to get what they want, I think recommendations are more interesting when trading-off specifications rather than money (especially when it's your company's money...).
If hard constrained by price, I'd get the M2. The storage can upgraded with a portable drive easily enough later, while the M3 has 8GB forever... though it would have to be the 10-core GPU option, since the store doesn't let you order the lower-end one anymore, and even if it did, if it's like the M3, adding 16GB automatically bumps the GPU, so the suggested option might not even exist.
Your M3 option weird, with the bumped GPU, but without the bumped RAM. It's an option I can't see many people choosing, but I guess you've got your hard limit.
Why not the M1? The M1 was a 2020 machine. Apple typically supports machines for 7 years, meaning the M1, while having enough CPU power for most tasks, would lose support in just 3 years. I'm not dropping much on a machine at the tail end of support. The M2 still has a fair number of years left. The M1 will have you wanting a replacement sooner, not due to lack of performance, but for OS support, and end up costing you more in the end.
Without the price constraint being as hard, my daughter picked up the education store M3 Air 16/512 for CAD$150 more than the education store has the M2 Air 16/512. I'd say CAD$150 for is worthwhile for an extra 2 years of support, a bump in CPU performance, and a much improved GPU, so in the real world, I'd actually recommend that.