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Found the solution. I had the number of processors at 4 but the update changed it to 2. Once I set it back to 4 the VM launched properly.
I see that others are reporting the same issue at @parallelscares. Any update?
Hi there, I just updated Parallels to version 11.1.2 (32408) and my Windows 10 VM will no longer launch. I receive a MEMORY_MANAGEMENT BSOD...