Um, I believe so. I only have Intel Macs to test with, but I don’t see any reason why it shouldn’t work on M1 unless the Python interpreter is somehow having issues. Have you tried running it with Rosetta? I’ll ask around and see if anyone knows of any obvious issues.
This is probably a case of “too little, too late,” but the VN should run fine using Rosetta, according to Ren’Py’s author. The next version of Ren’Py will feature native M1 (ARM) support–so the next release of Confusion should run natively then.