The problem is Apple removed Python2 from the system path CrossOver hardcoded to require in 12.3. Installing python2 doesn't "work" (it gets you an actual error instead of the triple bounce most people get though). It's not just a M1 problem, it's a Mac Problem.
This isn't a "M1 problem" or a "Mac problem", this is a Square Enix problem. Python2 was EOL'd over 2 years ago, its the developers responsibility to keep their apps/games/etc compatible with modern OS and framework changes. There was plenty of warning, for both 32bit removal in Catalina and also for Python2's eventual removal from the OS.
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