Can I replace the hard drive

The short answer is, no. Not really.

The long answer is a bit more complex.

MacBook Airs have not featured a user replaceable or upgradable hard drive since the 2017 model. The storage comes in the form of NAND flash chips soldered directly to the motherboard. From what I know, it may be possible to upgrade to a higher storage capacity, but it would require at a minimum the ability to desolder the existing chips and solder new, larger ones into the board. But furthermore it likely requires some firmware trickery to get the Mac to recognize that more storage is available. I don’t know for certain whether or not this sort of thing has been worked out for Apple Silicon Macs, but it’s definitely not something the average person would be capable of.