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this was addressed in previous builds on steam client beta but it was broken again in the last week or so, therefore i suspect that August 14th update might have caused regression for me.
Fix: Switch to Launching the .app Bundle
The root cause was mis-configuring the executable in Steamworks. I had set it to Word Game Editor.app/Contents/MacOS/Word Game Editor, which caused Steam to launch the binary in its x86_64 context (Rosetta). Switching the Executable field to Word Game Editor.app and clearing the Arguments field allowed macOS to handle architecture selection natively. After republishing, the app now runs as "Apple" (ARM64) on Silicon Macs, resolving the performance hit. Intel Mac support remains intact.
Steps to Reproduce/Fix:
In Steamworks > Installation > Launch Options, change the Executable from the internal binary (e.g., Word Game Editor.app/Contents/MacOS/Word Game Editor) to the full .app bundle (e.g., Word Game Editor.app).
Remove any custom Arguments (e.g., /usr/bin/arch -arm64 %COMMAND%).
Republish the app and test on an Apple Silicon Mac (check Activity Monitor for "Kind: Apple").