I haven't seen any counterargument yet to what I said so far. I do get it, Apple's does whatever they want anyways, it's their decision, but at least they should own up to what they chose.
The checkbox does not say it prevents to run it on the M1 but states about the availability on the store, it's called "Make this app available", I can also help you by providing actual screenshots if you want if you don't believe me.