Echo issue in Microsoft Teams when using Windows 11 in Parallels

Hi everyone,

I'm running Microsoft Teams (latest version) inside a Windows 11 VM on Parallels Desktop (latest version) and I've run into an annoying audio problem.
Whenever I unmute my microphone in a Teams call, all other participants hear a strong echo of their own voices. As soon as I mute myself, the echo stops. I've already tried multiple headsets (USB, Bluetooth, and 3.5 mm) -- the issue persists in all cases.

Has anyone else experienced this or found a fix? It seems to be related to the audio redirection between macOS and Windows.

Thanks in advance for any insights.