Using osxfuse on Apple Silicon is very difficult and it is blocked on IT managed machines. as a result, there is no way to mount folders on Apple Silicon.
Google Drive has already moved to using a network mount for their virtual file system. This is the way other apps are going to do it as well.
I tried using serve commands (with ftp and webdav) and mounting the local server, but they don't work very well and it cannot be automated.
I have a prototype for a serve nfs command. I can use it to mount my remotes as folders on my M1 mac. Considering that mounting NFS folders can be easily automated, I propose a new mount subcommand based on this feature.
I don't use it extensively for things like streaming but webDAV has worked very well for me on macOS. I prefer it over FUSE mounts since it terminates more cleanly if I kill the process or something.
I don't think it handles ModTime though so you lose that on your files if you care.