OK, so now I have to run the above Parallels CLI command every time before I run Parallels Desktop. Otherwise, the loop dialog situation reoccurs.
I got the thing to run on Big Sur beta 5. Looks like there's a conflict when you have VirtualBox installed as well. I uninstalled VBox and then cleared the kexts like suggested in the first post. Then I ran parallels, did a Restart, and the VMs started loading up. Now just to get the network working...