The first step I did was to install the M1 specific version of Docker available here.
I then installed Lando, choosing the 'customise' option during installation to keep the M1 version of Docker installed.
Upon starting my first website I noticed the Macbook getting very hot quickly. Activity monitor showed CPU usage related to docker at over 300%!
There are a number of settings I changed in Docker Desktop -> Preferences. I am not entirely sure if one or all these fixed the issue, but here they are:
There were four large mounted directories in here by default. I removed them all and added my user folder as that is where my 'sites' folder lives.
Hopefully these settings help.