Hardware: MBP 16" 2023 Chip: Apple M3 Pro Ram: 18 GB macOS (host): 15.1.1 Parallel Desktop Version: 20.1.1 (55740) (FULLY UPDATED) Virtual: macOS 15.1 Problem: The virtual mac can't access the internet. I have tried changing IP's manually and setting the default gateway to the host OS, I have released/ renewed DHCP. Nothing solves this problem. I do have other virtual machines on here (Windows 11, Linux) and they all have functional network connectivity. It is just the macOS. I have the same configuration on my M1 desktop and the virtual Mac has network. This problem only exists on my M3 Pro. I have fully rebuilt the M3, used that latest ISO from Apple and the one that Parallel recommended but nothing resolves. I have reloaded Parallel desktop and toolbox with current and problem still exists.
I had this problem with various older VMs after upgrading Parallels, namely getting a 169.x.x.x address, regardless of the type of "Source" (Bridged, Shared Network, etc). I eventually solved it (at least for my case) by going to the affected VM's Configuration settings, Hardware tab, removing the "Network" item completely, then adding it back. After that, the networking in the affected VMs started working properly. Hope that helps.
