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To set up environment variables on your M1 MacBook, follow these steps:

1. Open Terminal on your Mac.

2. Type the following command to create a new file:

   touch ~/.zshrc

3. Open the file in a text editor using the following command:

   open ~/.zshrc

4. Add the environment variable(s) to the file in the following format:

   export VARIABLENAME=variablevalue

   For example:

   export JAVA_HOME=/Library/Java/JavaVirtualMachines/jdk-15.0.2.jdk/Contents/Home

5. Save the file and exit the text editor.

6. To apply the changes, run the following command in Terminal:

   source ~/.zshrc

Now, to resolve the ZSH permission denied error, follow these steps:

1. Open Terminal on your Mac.

2. Type the following command:

   sudo chmod u+x /usr/local/bin

3. Press Enter and enter your administrator password when prompted.

This command gives user execute permission on the /usr/local/bin directory where many of the user-installed binaries are located.

With these steps, you should be able to successfully set up environment variables on your M1 MacBook and resolve the ZSH permission denied error.