Found the solution on another fourm:
-DO NOT USE THE XBOX APP IN THE MICROSOFT STORE.
-DO NOT OPEN THE MICROSOFT STORE.
- If you installed the Xbox App from the Microsoft Store, you must un-install it.
-Go directly to this page and download the Xbox for PC App: Xbox App for Windows PC | Xbox
-Run it, allow changes.
-NOW you sign in, allow it to "sign in everywhere on your device".
Here's why this works, and why this is NOT a Parallels issue: simply put the version of the Xbox app in the store is different than the standalone installer. It doesn't work, the installer does, as it installs the THREE "apps" needed for this to run: the Xbox app itself, Gaming Services, and most importantly the Xbox Identity Provider app. Installing the Xbox app from the store will not install the other two services required for this experience to work.
Anyone who has spent any time with Windows should understand that desktop apps and store apps are very different (EG OneNote). There's your tools and information boys, enjoy.
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