Does m1 MacBook Air support 2 external monitors

No.

MacBook Air with M1 chip - Tech Specs - Apple

"Simultaneously supports full native resolution on the built-in display at millions of colors and:

One external display with up to 6K resolution at 60Hz"

Connect one or more external displays with your Mac - Apple Support

"For Mac computers with the Apple M1 Chip: You can connect a

single external display to your Mac. Docks don’t increase the number of

displays you can connect."

As Bob noted, not natively. There are some workarounds using DisplayLink. Not everyone recommends doing so.

You may want to read this article…

How to Use Dual Monitors with MacBook Airs (M1/M2 Chips)

You may want to look at this video

https://m.youtube.com/watch?v=Kq_FyjcAULA