macOS Big Sur 11.1 Enables Full-Screen iPhone and iPad Apps on M1 Macs
Apple yesterday released macOS Big Sur version 11.1, with headline new features including AirPods Max support, privacy labels in the Mac App Store, a dedicated Apple TV+ tab in the TV app, and the ability to edit ProRAW photos in the Photos app.

Another notable change mentioned in the update's release notes is the ability for iPhone and iPad apps with non-resizable windows to enter full-screen mode on Macs with the M1 chip, which is particularly useful for video apps like HBO Max. macOS 11.1 also allows iPhone and iPad app windows to be switched between landscape and portrait orientations.
As noted by The 8-Bit, users on Reddit have confirmed that full-screen mode works as expected with games like XCOM and Tropico.
It is only possible to run iPhone and iPad apps on Macs with the M1 chip, which shares the same Arm architecture as A-series chips in the iPhone and iPad. Mobile apps are labeled with "Designed for iPhone" or "Designed for iPad" in the Mac App Store.
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