I'm using both fedora desktop and fedora kde and they look entirely normal, graphical desktops. i suspect (haven't verified) the UTM app wrapper is presenting access to the underlying Metal framework etc, so Fedora thinks its running on normal devices about which it already knew.

I didn't have to do _anything_ weird: just grabbed the latest Fedora iso for aarch64 ( or arm64...i forget what it was named), and voila.