As Reason 11/12 and Reason Rack Plugin requires Rosetta to run on Apple M1 computers, your DAW needs to run in Rosetta as well, to be able to use the Reason Rack Plugin.
Right-click the DAW app in Finder, select "Get Info…" and enable "Open Using Rosetta".
The next time you launch your DAW, the Reason Rack Plugin should work.
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