I tested this as part of testing the app on Intel and Big Sur (BetterDummy worked fine on this Intel config with an integrated Intel UHD630 so headless Mac Mini 2018 users should be fine).
I've found display compatibility has not been straightforward, having owned an M1 mini for the last year...which is unfortunate for a computer without a built-in screen.
Don't count on it supporting multiple external monitors. Expect compatibility issues, etc.
Last week it kind of burned a flickering rectangle onto my Dell ultrasharp 4k, which I thought was toast, but it gradually cleared up.
Like I said - weird.
Well, no way I'm buying a M1 due to the lack of RAM. Hopefully Apple will make a decent desktop for me next year and fix some silicon bugs while they're at it.
Incidentally, my current x86 mac mini is wonky with the hdmi output as well. The monitor randomly goes black for a few seconds once in a while.
I'm using 1920x1200 monitors. If I upgrade to a M1 Pro/Max Mac Mini (if those will ever be available) will I have any trouble using them at their native resolution?
From what I understand, this trick is helpful for headless machines.