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I've had the same problem. After two days or so the updates started to work. I'm in the beta channel.
On the following site https://www.microsoft.com/en-us/software-download/windowsinsiderpreviewARM64 you can download the VHDX-File for Windows 11,...
I have the same problem. Thought that the standard edition of Parallels 17 is enough for installing Windows 11.