I have also this problem since a week or so. I discovered that when working with programs on my Windows 7 in Parallels I had 100% CPU load. After investigating I found that it was the process svchost.exe that hugged a lot of memory and 99% of the CPU. Using the Process Explorer I could see that the instance of svchost that was hugging memory and CPU cycles was connected to the Windows Update service. A quick search on the Internet showed this to be a well know problem and I started to apply the various fixes described by Microsoft and others for this problem. I have also followed the methods described by Parallels and mentioned here by PaulChris, but after several days of trying to solve this problem without success I yesterday decided to installed old backups of my Windows 7 snapshots. I have now installed 5 different snapshots, one as old 1 year, and all of them now have the problem with Windows Update hanging, while in the past they worked without problem. I have therefore come to the conclusion that either there is now a serious problem at Microsoft with Windows Update or the latest update of Parallels Desktop 11 plays havoc with Windows Update for Windows 7. When I installed the old snapshot images the new versions of Parallels Tools gets installed and the old snapshots therefore now works in another environment than in the past. As the snapshots themselves have been stored on offline backup media it can only be the environment in which they now run that creates this problem. At the moment I am back with my current version of Windows 7 but to be able to work I have now disabled completely the Windows Update Service, while waiting for a solution to be found to this problem either by Microsoft or Parallels.
Last edited: Apr 17, 2016