Updated to 17 -- XP VM no longer sees keyboard input

Hi all,
I just upgraded to 17 Pro, and now my Windows XP VM will not recognize keyboard input.

When I start the VM, it goes to the XP login screen, but oddly the resolution is much lower than before. The VM cursor does not move at first; I have to click around with the Mac cursor and after a delay the VM cursor will appear where I clicked.

So I am able to click into the password login field -- but no text input is recognized. I can't type from my MacBook Pro keyboard, I can't paste text copied elsewhere, I can't double-click from the Emoji text palette... nothing. All I can do is click on the power button to shut down the VM. I've quit and relaunched Parallels, restarted the Mac, nothing changes.

To clarify, the VM worked perfectly until I updated this afternoon.

Any help or insight will be appreciated!

B

 

I have exactly the same problem.
After upgrade to Parallels Desktop 17, I'm not able to use Windows XP anymore.
Please HELP.
How can we go back to previous version (was it 16.5 ?) ?
Urgent please.

 

I run XP in 17 without any problems. Using an external USB keyboard on my MBP 16" running Catalina 10.15.7.
Also tried the internal keyboard without any problems.

 

I am also seeing similar mouse and screen resolution issues. Overall mouse input is very imprecise and unreliable, laggy/sluggish. Worked fine in 16, is terrible in 17.

 

Well, I finally re-installed Parallels 16.5... So I can work again with XP.
But there is no more shared folders...
Big headache this version 17 (looks more like a downgrade than an upgrade...) !!! and Support is not responding, unfortunately.