Best installation sequence to run Mojave VM inside Big Sur?

I have a MacBook Pro (Retina, 15-inch, Late 2013), 16 GB RAM. it is running Mojave. I wish to update it to Big Sur, but I also want to be able to use my 32-bit apps (such as the Adobe Creative Suite 6) because they were expensive enough the first time. It is backed up with Time Machine. So, ultimately, my goal is to run a Mojave virtual machine within Big Sur.

My question is: what is the best sequence?

A)
1) Update the computer to Big Sur
2) Install Parallels
3) Create a Mojave VM
4) Restore the Time Machine backup into the VM

B)
1) Install Parallels
2) Update the computer to Big Sur
3) Create a Mojave VM
4) Restore the Time Machine backup into the VM.

C)
1) Install Parallels
2) Create a Mojave VM (within Mojave)
4) Restore the Time Machine backup into the VM.
4) Update the computer to Big Sur

D) Something else?

I can reformat the disk, before doing anything, if that makes a difference. I have the appropriate Mac OS installers, and the installers of my 32-bit apps, so I can reinstall them all if necessary (but if I can use Time Machine to migrate the whole Mojave setup in one shot that would be a lot easier).

Any assistance would be appreciated!
Thanks,
John

 

Hey I purchased the Parallels Desktop 17 for Mac and when I go to enter my activation code it gives me a message saying "You have entered an upgrade key. Please confirm it with a key from the previous version" How do I solve this ?
Thanks