It's arguably violating Apple's IP rights, they have taken down similar projects.
https://www.xda-developers.com/i-tried-running-macos-inside-...
In the article it's mentioned a docker version of this got a dmca takedown.
Apple does not license MacOS for use on hardware they don't sell. It can be argued this feature does not have any legitimate functionality.
At the same time, if you must decide to violate the license terms of OSX it should be done in a separate fork.
GitHub will just delete the whole project if Apple ever catches wind of it and complains. The DMCA isn't exactly a court proceeding, usually the content host determines the juice isn't worth the squeeze.
That sucks for everyone who decides to use it for legitimate purposes.
To be blunt Apple gate keeps there software and build tools behind expensive hardware. If you disagree, use different software.
Edit: Given I'm 90% sure they aren't running Arm OSX anyway, this is going to be irrelevant in about 2 years.