@SergeyI2 and @JamesL41 thanks for that. I'm making progress but still cannot boot. After following your steps I do get to see grub but it does not boot through. So instead of Parallels saying there is not OS installed, it's now booting in grub but it does not process. See attached screenshot.
Below the outputs of my commands:
livecd ~ # fdisk -l
Disk /dev/sda: 64 GiB, 68719476736 bytes, 134217728 sectors
Disk model: Gentoo arm64-0 S
Units: sectors of 1 * 512 = 512 bytes
Sector size (logical/physical): 512 bytes / 4096 bytes
I/O size (minimum/optimal): 4096 bytes / 4096 bytes
Disklabel type: gpt
Disk identifier: 298E7D7A-DDDC-4CAC-82F1-EC65916A72B8
Device Start End Sectors Size Type
/dev/sda1 2048 526335 524288 256M EFI System
/dev/sda2 526336 8914943 8388608 4G Linux swap
/dev/sda3 8914944 134215679 125300736 59.7G Linux filesystem
Disk /dev/loop0: 286.19 MiB, 300093440 bytes, 586120 sectors
Units: sectors of 1 * 512 = 512 bytes
Sector size (logical/physical): 512 bytes / 512 bytes
I/O size (minimum/optimal): 512 bytes / 512 bytes
livecd ~ # ls -al /boot/
total 46957
drwxr-xr-x 3 root root 4096 Jul 19 10:59 .
drwxr-xr-x 21 root root 4096 Jul 19 10:15 ..
-rw-r--r-- 1 root root 0 Jul 18 02:04 .keep
drwxr-xr-x 2 root root 512 Jan 1 1970 EFI
-rw-r--r-- 1 root root 6815496 Jul 19 10:38 System.map-5.15.52-gentoo-arm64
-rw-r--r-- 1 root root 7843000 Jul 19 10:59 initramfs-5.15.52-gentoo-arm64.img
-rw-r--r-- 1 root root 33526272 Jul 19 10:38 vmlinuz-5.15.52-gentoo-arm64
livecd ~ # grub-install --target=arm64-efi --efi-directory=/boot/EFI
Installing for arm64-efi platform.
Installation finished. No error reported.
livecd ~ # grub-mkconfig -o /boot/grub/grub.cfg
Generating grub configuration file ...
Found linux image: /boot/vmlinuz-5.15.52-gentoo-arm64
Found initrd image: /boot/initramfs-5.15.52-gentoo-arm64.img
Warning: os-prober will not be executed to detect other bootable partitions.
Systems on them will not be added to the GRUB boot configuration.
Check GRUB_DISABLE_OS_PROBER documentation entry.
Adding boot menu entry for UEFI Firmware Settings ...
done
Really wonder what I'm doing wrong. I have been installing am64 on Intel based for years without any issues.