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I am having the same issue. Changing network settings doesn't work, rebooting either/both host and guest doesn't work, reinstalling Tools doesn't...
Same here. Removed and reinstalled Parallels Tools to no avail. Issues with all networking types, Shared, Host only, Bridged default Bridged Wifi...
The 17.0.1 update fixes these issues for me. I am able to join the Beta ring and no longer receive the warning.
I am also experiencing the "does not meet minimum hardware requirements" issue. Parallels 17 (51461), Windows build 22000.160, on a MBA (M1, 2020)...