I’ve been very active patching M1 issues.
It’s definitely a lot better than when this thread started! 
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If this happens it will be a bit of a shocker with Rosetta being removed from M1 Macs.
Personally can’t see if affecting any major countries.
I haven’t been on the forums in a while, is Blocs now M1 native app?
Oh yes it’s fully supported
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If you have an M1 Mac with an external display and the colors don’t seem right and gray scales seem too bright, you might want to check out the below YouTube video.
After I made the change in the referenced .plist file and restarted, the colors and gray scales looked much better on my M1 Mac mini with external monitor. Be sure to read the comments for any additional suggestions in case you run into problems.
Hope this helps any M1 Mac Blocs users!
p.s. I don’t know if this problem exists in the newly announced M1 Mac laptops.
p.p.s. I also just found out that if you change the scaled resolution in the Display control panel, it will automatically change the .plist file back to the previous default, and also create another default .plist in the local users ~/Library/Preferences/ByHost folder. Thus, reverting back to the original color/GS problem. 
So you may need to delete the local version of .plist file, re-edit the original .plist file, then restart to get the corrected colors back again. Again, please look at comments below the YT video to see more details about .plist locations and other details. You can see the comments after starting the video by clicking the YouTube logo which brings up the video in a separate window.