SteamOS
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Official SteamOS VM for Mac
This is a feature request: Recently helped sister setup Steam on Ubuntu in a VM on her Mac, using VirtualGL, so she could play Terraria. The process is a bit complicated but would it be possible for Valve to officially support this with SteamOS? Like, ship a preconfigured VM for running Steam(OS) on Mac, with native system integration. Similar to WSL2 but for Mac.
This would allow 32-bit games to run on Mac and would be a mostly seamless experience.
Why not just install the mac version of steam and terraria?
Because this just makes the whole steam library work. Even on M1.
You can't ship windows. You can ship qemu. And MMU paravirtualization is a thing.