Windows 11 crashes. "What failed: prl_virt_disk_balloon.sys"

My hardware and software:
MacBook Pro 2023, M2 Pro, 16 GB of RAM.
MacOS Sequoia 15.6.1
Parallels Desktop for Mac Version 26.0.1 (57243)
Windows 11 Pro version 24H2, OS Build 26100.5074 (Installed on Sept 3rd, 2025)

Windows crashes with the message:
Stop code: SYSTEM_THREAD_EXCEPTION_NOT_HANDLED (Ox7E)
What failed: prl_virt_disk_balloon.sys

I reinstalled Windows 11 from scratch and this failure is still here. I didn't have this problem with the previous Parallels Desktop version. I don't think I will renew my subscription because of this problem and will try VmWare or UTM, unless the people at Parallel's customer support solves this.

 

Hello Support-
I am having the same issue (Stop code: SYSTEM_THREAD_EXCEPTION_NOT_HANDLED (Ox7E), What failed: prl_virt_disk_balloon.sys)
with Windows 11 and Windows 2025 VMs with Parallels Desktop 26 for Mac Version 26.0.1 (57243). VMs crash randomly after ~ 5 minutes of use.
Any estimates on fix?
Thanks,
Mark

 

I have exactly the same problem. Could anyone post the solution here?

 

Good evening.
I have the same error:
Stop code: SYSTEM_THREAD_EXCEPTION_NOT_HANDLED (Ox7E)
What failed: prl_virt_disk_balloon.sys

System: Windows 11

Current Parallels version: Version 26.0.1 (57243)

Windows 11 constantly reboots and it is impossible to work.

The error started appearing after updating to a new version of Parallels a few days ago.

What could be the problem?

 

I also have been having the same issue for a while. Repeated crashes. My Windows, Parallels Desktop, and Parallels Toolbox for Windows are all updated. It is becoming rather annoying and unproductive. Can you please share the solution or open a ticket for me?

 

I still have this problem. Please is there a solution or update for this problem?

 

is there a solution Brian?

 

The same with Windows Server 2015 arm64: installing latest Tools, nothing but crashing!
Minidumps always point to ...baloon... crash.
Very annoying! (latest version 26.x)