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Replying to myself: issue is not with Parallels, but with CentOS & RHEL, which requires 64K pages, and it is not supported by the M1 yet. Fedora...
CentOS Stream 8 aarch64 does not boot. I get the grub menu with the install / check DVD, but whatever option I pick, I return to that menu, there...
Crash on start. Interesting, as I did remember seeing it work on QEMU.
If you resize the window (just a millimetre is enough), it forces a screen refresh. At least you see what happened if you were in the middle of...