You're right, you'll have problems as there is no native SQL Server. However, LocalDB does run on ARM64, and I really only develop against SQLite these days now anyway, so it's not a big problem for me. Maybe if you do any custom tables or something then it should probably be in LocalDB.
The Prism x86/x64 emulator should work though for .NET stuff so I assume there won't be big problems there. But.. you know, I've never tried and haven't heard of anyone who has.
Containers are great though