Now it says it cannot run due to lack of TPM and secure boot. I have Parallels Version 17.0.0 (51461). This happened on just one of my two VMs on a late 2010 MacPro running Mojave.
In the Configurations, Hardware section if you click on the plus at the bottom left you can add the TPM Chip which get you the Security Processor and Secure Boot but not the Standard Hardware Security which hopefully will be forthcoming in a future update? Parallels?
Doh, just noticed you are. It's probably because the processor in that Mac doesn't support whatever CPU hardware support PD is using for it's TPM.
I saw in another thread that the PD video driver is WDDM 1.3 and needs to be 2.0 for W11 so that sounds like a major upgrade.