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The issues do not occur in VMware. I have had one of the worst support experiences in my life with Parallels support over this. Good luck out there!
Another follow up: downgrading to 15 has solved my issue. It appears to be a memory related problem, as the total RAM usage of the VM is 30% less...
So the video RAM change only made it so the Windows guest no longer completely locked up my host OS. The VM itself is still very slow, stuttering,...
Another finding: limiting the amount of graphics memory to a set value (512MB for example) fixes the problem so far:...
Something else I have noticed: the problem only occurs with my Windows 10 guest. Other guests do not have the issue.
I have been experiencing the same issue. Completely unusable even with latest update. Technical report 361344448.