Although the OP has already decided to go with Lua, if anyone else looking at this thread is considering their options for making a plugin system, WASM/WASI is an excellent choice - mostly because it allows users to use Python (a favorite among programming newbies) along with any other language that compiles to WebAssembly (which will eventually be all languages).
You can even use something like Extism which is purpose-built as a drop-in library for creating a plugin system with WASM plugins, or you can use other runtime options like Wasmtime (built in Rust, from the ByteCode Alliance - where the WASI spec is being developed) or the WasmEdge runtime (built in C++, which is a CNCF project and is already being used in areas like eBPF to help users build Linux Kernel extensions).
In short, if you're building a project that has to be maintained long-term and you need a plugin system, then choose WebAssembly - you can't go wrong.
Although the OP has already decided to go with Lua, if anyone else looking at this thread is considering their options for making a plugin system, WASM/WASI is an excellent choice - mostly because it allows users to use Python (a favorite among programming newbies) along with any other language that compiles to WebAssembly (which will eventually be all languages).
You can even use something like Extism which is purpose-built as a drop-in library for creating a plugin system with WASM plugins, or you can use other runtime options like Wasmtime (built in Rust, from the ByteCode Alliance - where the WASI spec is being developed) or the WasmEdge runtime (built in C++, which is a CNCF project and is already being used in areas like eBPF to help users build Linux Kernel extensions).
In short, if you're building a project that has to be maintained long-term and you need a plugin system, then choose WebAssembly - you can't go wrong.
Cheers!