Yes, Android Studio and the M1 emulator are working. However keep in mind that sometimes Android Studio will start pushing to Swap massively about 1 hour of work in. I keep an eye on it and just restart the PC.
I think the swap issue is from Rosetta 2 but not sure. Compile times are pretty fast I stopped using my AMD 3950x Windows build and now just running MacBook Air M1 for all development.
Good luck with your setup.