Compatible wifi adapter with MacBook Air M1 for Kali linux

Why do you need any WiFi adapter? If you have Kali Linux installed in a VM, then make sure to pass the macOS network connection onto the VM.

The only officially support Linux distribution for installation on bare metal of an M-series Mac is the Fedora Asahi Remix distribution. There is also an Ubuntu Asahi distribution as well. I tested both of them on a MBAir (M1, 2020) laptop and had no problems utilizing the built-in WiFi.

Otherwise you should check on the Kali Linux forums or with the Kali Linux developers for recommendations assuming they support the M-series Macs.

Installing Kali Linux may be a lot more involved than the OP thinks.

There is an Apple Silicon version, but I believe it's for use inside of a virtual machine.

Elsewhere ("Installing Kali on Mac hardware"), the site has the caution "IMPORTANT! Newer Mac hardware (e.g. T2/M1 chips) do not run Linux well, or at all." The OP might want to reconsider a "bare metal" installation which might leave them with a non-bootable M1 MacBook Air.