This is a very silly restriction, at least to apply uniformly to all Macs. I think if you buy a more powerful Mac they should let you virtualize more Mac instances. Like an M5 maybe limit to 2, but maybe let an M5 Pro do 4 and an M5 Max do 8 or something.
Why should they impose a limit at all? Your hardware is a natural limit, you'll stop of your own accord when you reach its thresholds.
Whenever I see apple silliness, I have to remember:
"You're not the target market."