After upgrading to Parallels Desktop 17, if you restore to a snapshot with a running OS (either windows or macOS), you are unable to type in the VM. Mouse events work, but keyboard appears to be disconnected. We've seen this on VMs running Windows 10 and macOS Big Sur - with the parallels tools installed in both VMs. Restoring to a non-running snapshot (one that was taken while the VM was powered off) works just fine. So does rebooting the VM (after reboot, the keyboard works). It only occurs when you restore to a snapshot of a running VM.