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I'm trying to setup dependencies to write and test plutus contracts, but I'm worried that the dependencies may not be compatible with the M1 chip.

I have been following these instructions https://www.reddit.com/r/cardano/comments/mmzut6/macos_plutus_playground_build_instructions/

and I am recieving the same error

enter image description here

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What's your nixpkgs version? According to a commentor on the reddit thread you linked, he needed to use nixpkgs-20.09-darwin for his M1 mac.

You could also just try to set it up on an AWS Lightsail instancwe if you can't get the M1 to work.

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