Select Photoshop 22.5.1 (the final and most stable 2021 release with full M1 support). Click “Install.”

Therefore, there are two distinct versions of Photoshop 2021:

You downloaded a standalone installer meant for older macOS versions. Fix: You must install Creative Cloud desktop app first, even for older versions. Download it from Adobe's website (free).

To get the version optimized for your hardware, you should use the official Adobe Creative Cloud desktop application. Go to product viewer dialog for this item. Adobe Photoshop 2021 (Permanent)

Adobe Photoshop 2021 Mac M1 Work Download [better] Link

Select Photoshop 22.5.1 (the final and most stable 2021 release with full M1 support). Click “Install.”

Therefore, there are two distinct versions of Photoshop 2021:

You downloaded a standalone installer meant for older macOS versions. Fix: You must install Creative Cloud desktop app first, even for older versions. Download it from Adobe's website (free).

To get the version optimized for your hardware, you should use the official Adobe Creative Cloud desktop application. Go to product viewer dialog for this item. Adobe Photoshop 2021 (Permanent)