@ijonjic 's solution worked for me as well. Thanks!

I'm still dead in the water w/ this issue. Target is the cheaper M1 Air. I install from App Store and get the above non-responsive "clicking" issue on the "To run Intel-based applications, you will need to install Rosetta. Would you like to install it now?" modal no matter where I click. I downloaded the installer from this site and get the same issue on install. Command line install doesn't make a difference. Any ideas?