Does it work the same for M1 Macs?

Because the documentation only mention Intel CPUs with T2 chips.

Okay I just went and took a look...

Indeed it doesn't show the same options. This is what I saw when I went to Startup Security Utility:

(*) Full Security: Ensures that only your current OS, or signed operating system software currently trusted by Apple, can run. This mode requires a network connection at software installation time.

( ) Reduced Security: Allows any version of signed operating system software ever trusted by Apple to run. [ ] Allow user management of kernel extensions from identified developers [ ] Allow remote management of kernel extensions and automatic software updates

There's no option to turn on or off a firmware password, instead I had to login with a local administrator account first before I could access anything under recovery options.

There doesn't appear to be a way to set "No Security" as an option either. At least from the GUI. Maybe it's possible from Terminal somewhere. But it seems unlikely or undocumented for now.

Edit: Here's the Apple documentation on this: https://support.apple.com/en-us/guide/mac-help/mchl768f7291/...

Regarding kernel extensions, there's also https://support.apple.com/en-us/HT210999 and https://support.apple.com/en-us/HT211860

Regarding macOS Recovery, there's https://support.apple.com/en-us/guide/mac-help/mchl82829c17/...

It's possible through the GUI, although it's convoluted and I think you first need to disable SIP? I am sure bputil should be able to do it as well.