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I have been using Parallels on my M2 Mac to run Ubuntu for the first time, and I absolutely love it. However, I am only on the free trial and I think it's kinda useless to spend $120/year just to run Ubuntu with a decent amount of memory. So I tried to use Ubuntu's USB install method for Mac, but I assume it is not available for Apple Silicon Macs as when I try to boot into Ubuntu, the USB will not show up. Did I make a mistake or should I just try an alternate method?

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As of now, you cannot natively run regular Ubuntu on Apple Silicon Macs. However, there is a GNU/Linux OS which supports such computers. Check out https://asahilinux.org. They have GPU drivers as well.

Check out their feature support webpage. You can install it from within MacOS by running a script, and it can be uninstalled quite easily.

If you insist on specifically using Ubuntu, check out the Ubuntu Asahi GitHub page. This is an Ubuntu image created with the Asahi kernel, and is not officially supported by Canonical. Also, you should expect more bugs compared to Asahi Linux.

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An alternative to Parallels would be WMware Fusion Player. VMware has a free Person Use License for Fusion Player, which runs on Apple Silicon. According to VMware, you should be able to install an ARM64 version of Ubuntu 22.10 Server as a guest, when using Fusion Player 13. Unfortunately, I have not been able to find a link where an ARM64 version of Ubuntu 22.10 Desktop can be downloaded. You should be add a Desktop (GUI) after installing the server version.