I'm using a Macbook Air M2 and Better Display seems to be making a massive difference for me. Been using it for a week or so. Settings are as described by karthi3219 above. If I change the colour profiles from sRGB for the built in display and Generic RGB Profile for the dummy or virtual display, I seem to get eyestrain. Weird. I'd used Better Display on my wife's Intel MBP and it helped a lot there too. Big thanks to you guys for sharing this solution. I hope it helps more people.
The only thing I can't make work is watching Apple TV on the MBA. When the built in display is set to mirror dummy display, video playback on Apple TV is black/ gives no image. But this is a small issue, when the laptop is otherwise great for me currently thanks to this fix.