Why is the "You Need to Install Rosetta" Dialog Triggered When Installing Fat Binary (Intel/M1)?

Our app Isadora is a "fat-binary" for Intel and ARM. When running our installer I am presented with a dialog that says

"To Install Isadora 3- Standard Version (Intel/ARM) you need to install Rosetta. Do you want to install it now?"

I tried saying "Not Now" but then the installation failed because macOS says our app requires Rosetta support.

By no means does are app require Rosetta; it is compiled for both ARM and Intel and runs natively on an Apple Silicon (ARM/M1) machine.

Why is this dialog appearing? What can I do to prevent it?

Why is the "You Need to Install Rosetta" Dialog Triggered When Installing Fat Binary (Intel/M1)?
 
 
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