After Parallels update yesterday, XP VM starts, but does not repond to Fn-Ctl-Alt-Del

JaredG2

Bit poster
After latest Parallels update yesterday evening (7-27-16 CDT), XP VM starts, but does not repond to Fn-Ctl-Alt-Del from the keyboard, or from keyboard actions. I can drag the Window around asking me to "Press Ctl-Alt-Del to login" - suggesting the VM is alive - but it does not respond to Fn-Ctl-Alt-Del. Tried closing Parallels and rebooting Mac a couple times, but no change. I'm stuck. Any suggestions would be appreciated.
 
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