No, the version of macOS on M1 Macs is the exact same version as on Intel Macs. They don't run absolutely every piece of software that Intel Macs do, but it's pretty damn close. It's certainly not even in the same category as something like ChromeOS and ARM Windows.
It sounds like you may be pre-judging the M1 Macs based on your past experiences with ARM desktops/laptops. I strongly suggest that you put those experiences aside when looking at these, because Apple has gone to a great deal of effort to ensure that the experience is as close to the previous iteration as possible, with the benefit of the extra performance and battery life the M1 gives. It's really nothing whatsoever like the comparison between Intel and ARM Windows, or Windows and ChromeOS.
It sounds like you may be pre-judging the M1 Macs based on your past experiences with ARM desktops/laptops. I strongly suggest that you put those experiences aside when looking at these, because Apple has gone to a great deal of effort to ensure that the experience is as close to the previous iteration as possible, with the benefit of the extra performance and battery life the M1 gives. It's really nothing whatsoever like the comparison between Intel and ARM Windows, or Windows and ChromeOS.