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I had been having issues with Windows 10 freezing for multiple seconds randomly on Big Sur with Parallels 16 that I didn't seem to have with...
I can confirm this works for me as well, thanks Martin! I have just submitted tech report 350953762 of a hung windows boot with the apple hypervisor.
I am also experiencing this issue after the latest Windows update it will not boot with the Apple Hypervisor, the VM cannot be reset or shutdown...