I need to solve an equation system $$ \begin{pmatrix} A \\ I \end{pmatrix} x = \begin{pmatrix} b_0\\b_1 \end{pmatrix} $$ in the least-squares sense. Let's assume $I$ is the $n$-by-$n$ identity matrix, $A$ is some $m$-by-$n$ matrix, e.g., Laplace with Poisson boundary conditions.
I know a good preconditioner $M$ for $A$, so solving $$ M^{-1} A x = M^{-1} b $$ is easy. Can I make use of this when solving the least-squares problem?