Windows 11 no longer booting past start screen on MacBook Air

I have a new MacBook Air (M1, 2020) running MacOs 12.1 and have installed Parallels 17.1.1. This installed Windows 11. This was working fine yesterday. Today, Windows 11 stops with a black screen with the blue squares of the Windows logo. Screenshot attached. If I click on this my cursor disappears and I see a message in the top bar saying "Ctrl Alt" to free cursor. That gets it back, but I can't progress past this screen with urgent work to do. I note the CPU usage is shown in the top bar as 100%. What is happening and how can I get this working again?
I've set the mouse/trackpad as "Don't optimise for games", as I've seen that suggested, but that makes no difference to either progressing past this screen or whether the cursor disappears.

 

Got it working! At least for now.
I noticed that reference to CD/DVD appears in a couple of places in the configurations, but my MacBook Air has no CD/DVD drive (I guess none do). So I removed the CD/DVD from the boot order and selected "disconnect" under the CD/DVD hardware settings. Then Windows started immediately on request.
Was that it? I'll report back if it stops working.

 

I had the same problem. I think it might've been related to closing the Control Center window during the boot process. I think it froze the boot of the VM. I now leave the Parallels Control Center open until windows 11 is successfully up and then I close it.