No. It's all native Arm. In the UTM app, when creating a new VM, there's an option to say it's going to be "Linux" (generically at that point), which exposes a checkbox which allows you to specify use of Apple Silicon hypervisor.framework, and specifically _not_ x86 emulation.

I use hypervisor.framework, never use x86 emulation, and the result is great. Tested with both Fedora for ARM and Arch for ARM (perhaps CachyOS's bundling of Arch works there, but i did it lower level because i'm an old nerd).