Parallels 16 works fine with CentOS 8 (installation date 2020-10-22), although I did have to manually update the VM, reboot, and then manually run:
Code:
sudo dnf install checkpolicy selinux-policy-devel gcc kernel-devel-$(uname -r) kernel-headers-$(uname -r) make
After doing that I was able to install the tools without issue. This was with kernel 4.18, haven't tried it with a more recent version so you'll probably need to look at the link above to run a 5.x kernel.