Can't Resize my Windows 7 hard disk

I want to reduce the .pvm file size. I already went to reclaim disk space on Parallels but that didn't work and its still 1.56TB. Right now the hard disk space is set to 2TB. I know that I can still have the hard disk set to 2TB and and have a small .pvm file because I have fresh install of Windows Parallels with the hard disk set to 2TB and the file size is 8.55GB. I am running a Mac Pro a late 2013 version and OS is Sierra. The version of Parallels I am running is Windows 7. The version of Parallels I am running is Parallels 14. Home Edition. Would resizing the hard disk do it? If it would I can't because when I try to I get the error message: parallels unable to resize this hard disk. its file system needs to be repaired. I did check the file system and there were no errors to be found. Could someone please help me out here? Thanks.

 

Let us know how much space Windows C drive occupies in the virtual machine and do you have any snapshots?

 

No I never used snapshots because I didn't know what they were. Used space is 197GB and the amount of free space is 1.80TB and I learned about TRIM and I just turned it on and I not seeing my .pvm file getting any smaller.

 

Locate the PVM file and right click -> Show Package contents then check the .hdd file's size.

 

I did and the file size is 1.56TB.

 

Please follow these steps:
1.) Free up disk space in Windows as much as possible, shut Windows down (as opposed to simply suspending it) and then reclaim disk space.
2.) Disable 'SmartGuard'.
3.) Launch Terminal (from the Finder menu, navigate to Go -> Utilities -> Terminal.app).
4.) Copy the following command and paste it in Terminal as it is (do not hit 'Enter' yet): prl_disk_tool merge --hdd
5.) Drag the .hdd file from within the .pvm file and drop it inside the Terminal window (do not close the screen in which you see the .hdd file yet; keep it open).
6.) In Terminal, you will now see an outcome similar to the following example (please note there should be a space between --hdd and /Users/Username...): prl_disk_tool merge --hdd /Users/Username/Documents/Parallels/Windows\ 7.pvm/Windows\ 7-0.hdd
7.) Press 'Return' to start merging Snapshots (this process removes all snapshots, including hidden ones). (IMPORTANT: Please wait till the operation completes; do NOT close the Terminal window before then.)
8.) Once the operation finishes, close Terminal.
9.) Now, go back to the window in which you saw the .hdd file. Move the folder 'Snapshots' and the file 'Snapshots.xml' to the Trash. Then close this window.

 

Ok I fixed the problem by starting a new VM and moving all my files to the new VM.

 

Very well. You can also take note of the steps suggested above for future reference.