as there is no arm64 release of sqlserver even for the arm64 surface. so you can not install sqlserver or sqlserver express in the vm.
instead you will need to install docker on your Mac and pull a sqlserver (amd64) docker image. docker on Mac now supports amd64 images via rosetta emulation.
sudo docker pull mcr.microsoft.com/mssql/server:2022-latest
https://learn.microsoft.com/en-us/sql/linux/quickstart-install-connect-docker?view=sql-server-ver16&tabs=cli&pivots=cs1-bash
you should create an external mount for your database file, so you can update without losing data. on Mac, sqlserver does not support local mounts. you need to create a docker volume, and mount the volume. see:
https://docs.docker.com/storage/volumes/
instead of localdb (sqlexpress), use SQLite or your hosted docker image.
note: in the past MS had an arm64 version of azure sql edge docker image (mcr.microsoft.com/azure-sql-edge). it is basically sqlserver 2019. if you google you can get a copy.