Thanks @BoBKelso! To add up to your answer, steps 4 and 5 weren't clear to me, so here is what I did instead:
Obtain a list of files/directories and LaunchAgents with: pkgutil --files com.apple.pkg.RosettaUpdateAuto
Save them in a way that you can access them in the recovery
Boot into recovery
Open terminal in recovery (btw to load recovery on M1 macs you long press the power button instead of holding CMD+R)
Run csrutil disable and confirm (temporary disable SIP)
Reboot
Delete the files listed at step 1 (in my case it was enough to delete/Library/Apple/usr/share/rosetta and /Library/Apple/usr/libexec with all their contents)
Reboot back to recovery terminal
Run csrutil enable and confirm