I have a VM containing debian 8. I was able to upgrade this VM to debian 9. However, after reboot, I experienced a hang while linux was trying to start X11. If I boot linux in recovery mode, it hangs while trying to start ethernet service. Anyone else experience these problems?
From my point in recovery mode in any case system should not hang on network service start. Anyway, try to reinstall Parallels Tools: try to boot in regular mode (where X11 doesn't start), switch to virtual terminal and run ptiagent-cmd --install under root. Beware Debian 9 is supported only in Parallels Desktop 12.