OK, I have a fix. You need to use ViVeTool from "thisbookisclosed" on github. It looks like Microsoft are not disabling AIKv2 on Parallels VMs with CFR. The vivetool but it does allow you to create a local override to disable AIKv2.
Download vivetool from github-dot-com/thisbookisclosed/ViVe/releases (the ARM/Snapdragon version), and run the following in elevated (Admin) Powershell window:
(change directory to the downloaded files, unblock them (remove MarkOfTheWeb), and use vivetool to force disable AIKv2. Then reboot.)
cd ~\Downloads\vivetool
Unblock-File *.*
.\vivetool /disable /id:62861611
Restart-Computer