Parallels 17 added support for virtualizing macOS 12 on M1 Macs running macOS 12. But it seems prlctl is not aware of this fact Using prlctl list --all does not show running macOS 12 VMs, only the Ubuntu VM I also have running: torarne@m1-mini Parallels % /Applications/Parallels\ Desktop.app/Contents/MacOS/prlctl list --all UUID STATUS IP_ADDR NAME suspended - Ubuntu 20.04.2 ARM64 Using "register" on the .macvm directory doesn't work: torarne@m1-mini Parallels % /Applications/Parallels\ Desktop.app/Contents/MacOS/prlctl register /Users/torarne/Parallels/macOS\ 12.macvm Register the VM... Failed to register the VM: The configuration file you specified is invalid. Make sure that the specified file is a valid Parallels virtual machine configuration file and it is not corrupt, or select another file. Are there any workarounds for this, is proper support via prlctl planned, and if so, when?
Yes, macOS VMs lack many features, like the possibility to configure them or to take snapshots. So far they are pretty useless.
Reading https://kb.parallels.com/125561 it looks like this is a known limitation. The question is, is this on the roadmap, and when can we expect it?