Windows ARM64 VMs running in Parallels 16.5.0 always crashes with KMODE_EXCEPTION_NOT_HANDLED (1e) when I single-step an instruction in windbg. Please consider prioritizing a fix for this issue.
I have the same problem, but with Visual Studio 2019 Preview remotely debugging an ARM64 C++ app running under Parallels 16.5 on apple silicon M1.