FWIW - I did get the same behaviour you described initially but following the troubleshooting steps on my M1 machine allowed me to receive the following prompts after selecting a local Atlas deployment of default (as per the guide you have linked):
1/3: Starting your local environment...
2/3: Downloading the MongoDB binaries to your local environment...
3/3: Creating your deployment local4079...
I’ll let this complete but let me know if those steps do not work for you.
Regards,
Jason