I have a Mac Studio with the M2 and it works fine.
However, when updated, did you uninstall And delete everything from the Shared folder and reinstall Unreal? UE 5.2 added support for Silicon. So if you have binaries left over from <5.2 it’s possible that would cause the problems, that some binaries are for ARM and others for Intel. I would do a very clean install of Unreal now that you have updated your OS and Xcode.