The hang is because the user mode component of SSHfs (the one the driver in the kernel calls out) hangs, and because the driver is blocked your process is stuck in an uninterruptible state (wherein it won't respond to signals, which your ^C is (SIGINT)).
It's not necessarily an Intel vs. M1 issue. It might be as simple as a connectivity issue between your M1 and (your)host.com. (there's very little info in your question to deduce what the problem is, but I'd suggest check the full stack, from basic ping, through TCP 22, through ssh keys in your ~/.ssh folder)