It can. I have a M3 Simply, along with a M3 Lite. I boot to M3 to play NDS. If I want to play to GBA, I boot to m3 Lite, and play. You *only* need a passcard to play NDS games tho, not GBA. You can test it out yourelf by taking out your passcard 3, booting to M3SD, and playing GBA.
I...