I also had issues installing node-sass on M1, and ended up using the opportunity to replace it with sass, as recommended on the LibSass deprecation notice.
https://sass-lang.com/blog/libsass-is-deprecated
If you’re a user of Node Sass, migrating to Dart Sass is straightforward: just replace node-sass in your package.json file with sass. Both packages expose the same JavaScript API.
As mentioned by @Ti Hausmann you can try with:
npm uninstall node-sass
npm install --save-dev sass
The replacement was completely smooth, it worked on M1, and I couldn’t notice any performance impact locally or on the CI.