Cannot install macOS VM on Sonoma 14.3.1

I cannot get a macOS VM to run on Sonoma 14.3.1 on M1 MacBookPro 16" 2021 (also on Sonoma 14.3.1) - Parallels Version 19.2.1 (54832)...
STEPS

1. Installed Parallels Desktop Pro (trial)
2. Created VM the only way possible: Download macOS image (through wizard)
3. Started VM

Note: Also tried download another time, install directly from downloaded file and from command line.
OBSERVED

• VM starts booting (turning wait cursor; then Apple logo black screen with progress bar)
• Progress bar goes to about 25% and gets stuck
• After ~30s the VM shuts down silently

It has all permissions that installations wanted and also that support recommended me to set (full disk access, accessibility and screen recording). Tried on a fresh local admin account as well. There is plenty of memory, CPUs and disk space.
Note: Other VMs work just fine (for example Ubuntu box).

LOGS
I can find this related to the incident (from reporting tool logs):
02-26 11:34:47.074 F /macvm:7335:b06b/ Installation progress : Fract(%25.00), Units(25/100), Finished(0), Cancelled(0), Kind((null)), Est(0)
02-26 11:34:47.074 F /macvm:7335:b06b/ Installation progress : Fract(%25.00), Units(25/100), Finished(0), Cancelled(0), Kind((null)), Est(0)
02-26 11:35:41.424 F /macvm:7335:b06b/ Installation failed: An error occurred during installation. Installation failed.
02-26 11:35:41.425 F /StateMachine:7335:b06b/ VM state(VmStateInstalling): enqueued 'VmLocalCmdKill'(20005) command
02-26 11:35:41.428 F /StateMachine:7335:b093/ VM state(VmStateInstalling): delay 'VmLocalCmdKill'(20005) command
02-26 11:35:41.428 F /StateMachine:7335:b093/ VM state(VmStateInstalling): changed to VmStateStopped
02-26 11:35:41.428 F /StateMachine:7335:b093/ VM state(VmStateStopped): started 'VmTimerShutdown' timer, delay 120000 ms, times to fire 1
02-26 11:35:41.428 F /macvm:7335:b093/ Cancelling installation
02-26 11:35:41.428 F /macvm:7335:b093/ Installation progress : Fract(%25.00), Units(25/100), Finished(0), Cancelled(1), Kind((null)), Est(0)
02-26 11:35:41.429 F /macvm:7335:b093/ Failed to cancel installation.
02-26 11:35:41.429 F /macvm:7335:b093/ Terminating VM Process ...

Anybody has any advice?

 

report ID is: 451939067

 

Hi Any updates on this, I having the same issue. Thanks!

 

Hello, I've had a support issue open with Parallels about this, since we were evaluating the purchase. They were not able to solve it and we have finally given up. So, sorry, I don't know about any root cause or solution for this.

 

You can reference our case #4628328. They have closed it as "Solution Provided" (which is not true) so you can press them a bit about it ; )