I’ve used a HooToo USB-a hub (that looks like yours) downstream of Anker USB-c to connect a keyboard and the occasional usb stick. It’s slow but I haven’t had any other problems.
It should work. However, there may be a way to connect the Anker hub directly to your M1 Mac. I have that same hub and I believe it connects via a USB-B 3.0 cable, so you could also get a USB-C to USB-B 3.0 cable and plug the it directly into the USB-C port on your Mac.
I agree. I originally connected my HooToo using an adapter but the Cable Matters cable would be a cleaner solution, if you have the port to spare. I didn’t.
Treat it the same as daisy chaining extension cords. It’s fine. Just don’t daisy chain anything high power. Mouse? No problem. Keyboard? No problem. Charge a portable battery? Less good idea. Plug in a spinning external hard drive that requires a bit of extra power for spin-up? Less good idea. Filling all 10 slots on that hub at once? No.