Your log confirms what Cameron mentioned. The Sundowner C23 v2 uses Gizmo for its systems. Gizmo64 is an x86_64 binary, and your M2 Mac needs Rosetta to run it. Without it, Gizmo64 fails to load entirely, and that's why you're getting no sound and non-functional cockpit controls like the fuel selector. The aircraft shell loads, but none of the underlying logic is running.
Regarding the crash when trying to run X-Plane under Rosetta, try the following:
1. Open Terminal (Applications > Utilities > Terminal)
2. Paste this command and hit Enter: softwareupdate --install-rosetta
3. Let it complete, even if your Mac says Rosetta is already installed. This forces a clean install.
4. Right-click on X-Plane 12.app, select "Get Info", and check the box for "Open using Rosetta"
5. Launch X-Plane
That's the cleanest solution I can suggest for the time being. Running X-Plane under Rosetta has no negative effect on X-Plane itself or any other add-ons.
If X-Plane still crashes under Rosetta after that, the crash would be on Laminar's end rather than ours, and I'd recommend reporting it to them through their bug reporter. But in most cases, step 1 resolves the issue when Rosetta wasn't properly installed to begin with.
I'll be looking at converting the code to run natively under ARM in the near future, which will eliminate the Rosetta requirement altogether.