Ubuntu 20.04 won't boot with Kernel > 5.13.0-32

A number of folks, including me, are getting this issue. There are already a couple of threads opened in the last week about this. Clearly something has recently broken either in the linux kernel (unlikely) or in Parallels (more likely) - we're hoping that as it was quickly introduced, it can be just as quickly addressed (but then, I'm an optimist :-)).
 
Further to the above, the problem doesn't seem to be specific to a single kernel version, but to a particular configuration of kernel. I have a VM which installed as Ubuntu 18.04 (worked fine - kernel version 4.15) then failed to boot when upgraded to 20.04 (kernel 5.4) but booted OK when previous kernel selected in grub.
 
Nearly the same issue here:
  • hanging on boot with kernel 5.13.0-35
  • fine on boot with kernel 5.13.0-28
(Parallels 17.1.1, Ubuntu 20.04)

parallels-boot-error1.png
 
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