Hi. I am in the same boat here. Moving from my old fateful MacMini Late 2012 with Catalina and Parallels 13 to my new MacMini 2018 with Big Sur and Parallels 16. I copied my main Windows VM (124 GB WINdows Server 2019) to the new Mini and when tried to start the VM the Mac showed a panic screen and just powered off. After many try and error I found that the problem was the Hypervisor. I changed to Apple and now the Mac wont panic but the VM wont start... it shows the Windows logo, the spinner and then nothing happens... the spinner wont even spin.
Any ideas besides building my MV from scratch ??