cannot use Parallels hypervisor on macOS Big Sur

I had the same issue and was able to fix it by going to my Parallels folder and clicking on my WindowsVM. Then go to ACTIONS>CONFIGURE. In the CPU/Memory tab go to ADVANCED where you will see a Hypervisor drop down. Set it to APPLE rather than Paralells. Restart your MAC and it should now work for you.
I am a bit new at using Parallels (had been using another VM previously). where/how do you go to your Parallels folder?
 
If you instance is paused, and you can't change the hypervision type, use this solution, it's works for me.
  1. Remove all third-party kernel extensions from the /Library/Extensions/ folder.
  2. Click OK in the notification from macOS about kernel extensions.
  3. Go to System Preferences > Security & Privacy > General, then click Allow button and enable (re-enable) Parallels International GmbH kernel extension.
  4. Restart the Mac and start Parallels Desktop and virtual machine again.
https://kb.parallels.com/en/125039
 
Hi,
I was also getting same error. Following the below method, my issue resolved and now Windows 10 working fine on my MacBook Pro M1. Method is :-
1) In Parallel Desktop--> File --> New--> Select manual source file
Then wait for setup completion. I think so there is no issue of Hypervisor settings either Apple OR Parallel. Can check the performance issue later.
Try yourself and reply if this works on your system. Stay safe
 
Same here! I can't open the settings since it tells me to restart the virtual machine. But still, it stays frozen and won't allow me to change any settings. (Picture is for the german settings but you will get the picture...
I just went to "Action" > "Stop" and then was able to do so.
 
When I get to the configurations page and click the CPU & Memory tab I have a message at the top that says "to be able to change the settings on this page, resume the virtual machine and then shut it down." Well when I resume the virtual machine "parallels" I get the the message about the restarting my Mac so the hypervisor can update. Any suggestions
 
When I get to the configurations page and click the CPU & Memory tab I have a message at the top that says "to be able to change the settings on this page, resume the virtual machine and then shut it down." Well when I resume the virtual machine "parallels" I get the the message about the restarting my Mac so the hypervisor can update. Any suggestions
Option 2 on this page worked for me: https://kb.parallels.com/en/125319
  • Quit Parallels Desktop
  • In Finder, right-click on your .pvm file (the virtual machine file) and select 'Show Package Contents"
  • Open the file config.pvs with Text Editor
  • Search for HypervisorType
change:​
<HypervisorType>0</HypervisorType>
to
<HypervisorType>1</HypervisorType>
  • Save and close the file
  • Open Parallels Desktop
  • Resume the VM
 
If you instance is paused, and you can't change the hypervision type, use this solution, it's works for me.
  1. Remove all third-party kernel extensions from the /Library/Extensions/ folder.
  2. Click OK in the notification from macOS about kernel extensions.
  3. Go to System Preferences > Security & Privacy > General, then click Allow button and enable (re-enable) Parallels International GmbH kernel extension.
  4. Restart the Mac and start Parallels Desktop and virtual machine again.
https://kb.parallels.com/en/125039
Thanks for showing this alternative, since I did fail to properly shut down my VM before updating. However, I don't have an Extensions folder in my library at all, so I can't do this one. Any recommendations?
 
Option 2 on this page worked for me: https://kb.parallels.com/en/125319
  • Quit Parallels Desktop
  • In Finder, right-click on your .pvm file (the virtual machine file) and select 'Show Package Contents"
  • Open the file config.pvs with Text Editor
  • Search for HypervisorType
change:​
<HypervisorType>0</HypervisorType>
to
<HypervisorType>1</HypervisorType>
  • Save and close the file
  • Open Parallels Desktop
  • Resume the VM
This was it! This is what worked for me when previous solutions couldn't because I both suspended my VM instead of shutting it down and my Extensions folder is missing from my Library. Thank you!
 
This was it! This is what worked for me when previous solutions couldn't because I both suspended my VM instead of shutting it down and my Extensions folder is missing from my Library. Thank you!
Cool! The Extensions folder thing didn't work for me, either. Nice to know that this solution works for other people!

BTW - The extensions folder referred to in the other solution is up at the MacintoshHD level - maybe you were looking in your user Library folder? It's easy to confuse the two.
 
Option 2 on this page worked for me: https://kb.parallels.com/en/125319
  • Quit Parallels Desktop
  • In Finder, right-click on your .pvm file (the virtual machine file) and select 'Show Package Contents"
  • Open the file config.pvs with Text Editor
  • Search for HypervisorType
change:​
<HypervisorType>0</HypervisorType>
to
<HypervisorType>1</HypervisorType>
  • Save and close the file
  • Open Parallels Desktop
  • Resume the VM

This was the only way how to make sure Parallels
Version 17.1.0 (51516) would work!
Thank you so much, default security popup was useless - because in MacOS Preferences Security settings there is absolutely nothing related "HypervisorType extension"
 
Paralles has a bug which is not fixed up till 15th October 2021 - if you have Catalina etc and suspend VM and then upgrade to BigSur then you are stuck without manual editing of VM - no way you can start using their interface
 
Hi. I am in the same boat here. Moving from my old fateful MacMini Late 2012 with Catalina and Parallels 13 to my new MacMini 2018 with Big Sur and Parallels 16. I copied my main Windows VM (124 GB WINdows Server 2019) to the new Mini and when tried to start the VM the Mac showed a panic screen and just powered off. After many try and error I found that the problem was the Hypervisor. I changed to Apple and now the Mac wont panic but the VM wont start... it shows the Windows logo, the spinner and then nothing happens... the spinner wont even spin.

Any ideas besides building my MV from scratch ?? :(
 
Hi. I am in the same boat here. Moving from my old fateful MacMini Late 2012 with Catalina and Parallels 13 to my new MacMini 2018 with Big Sur and Parallels 16. I copied my main Windows VM (124 GB WINdows Server 2019) to the new Mini and when tried to start the VM the Mac showed a panic screen and just powered off. After many try and error I found that the problem was the Hypervisor. I changed to Apple and now the Mac wont panic but the VM wont start... it shows the Windows logo, the spinner and then nothing happens... the spinner wont even spin.

Any ideas besides building my MV from scratch ?? :(

BTW, the new MacMini 2018 is Intel based, not the M1 version.
 
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