How do I connect my Akai MPC Key 61 to Macbook Air m1 2020

As shown in the keyboard's manual and quick start guides, you need to connect the computer to the USB-B port on the keyboard.

Your MacBook Air has two USB-C ports. One way to do things would be with a USB-C to USB-B cable. Amazon has a number ranging from $7 to $12, several which have descriptions claiming they are suitable for MIDI use. If you are bringing out USB-A in any way (e.g., by plugging a USB-C hub with USB-A ports into one of your MBA's USB-C ports), then you could probably use a USB-A to USB-B cable to make the connection.

The site says there is bundled "MPC Desktop DAW" software for Macs and PCs, and that you can run it as a DAW (standalone?) or "as a VST/AU plugin in 3rd party DAWs."

The MPC 2.11 Desktop Software and Firmware Update document says that the software "is now compatible with macOS Monterey" and that "MPC adds native support for running on Macs with Apple Silicon M1 processors." It has a section on how to download the 2.11 desktop software and keyboard firmware updates.

So my guess is that you need the USB connection, the MPC 2.11 desktop software, and the MPC 2.11 firmware. I don't know if you plan to use their software standalone, or as a plug-in to Logic Pro X (which Apple sells online in the Mac App Store).

https://www.akaipro.com/mpc-key-61

Click on the Downloads tab, or scroll down to the Documents & Documents section, and you'll see online manuals, release notes, and updaters.