Installing OpenWrt on m1 mac apple silicon virtualization software

Hi,

Is there an image of OpenWrt that can install on the new m1 mac through parallels, UTM or the vmware fusion preview for m1 mac?

No, that would be up to you to develop. The virtualization layer abstracting the hardware (to some extent) will make that easier than potential bare iron support, but it's still not going to be fun.