Freezing issue when running macOS VM on Parallels

Working with my MacOS VM for another 10 hours since my last post and I can confirm this seems ONLY to happen when scrolling by using two fingers on the trackpad. Especially egregious when scrolling in VS Code but also happens when scrolling in Safari and some other apps.

 

My SOLUTION: Connect a USB mouse and don't use the trackpad inside the VM. Haven't tried a Magic Mouse.

This situation is primarily in Chromium (Chrome/VSCode) app - and the problem is the trackpad handling (separate trackpad is unusable, but the built in MBP trackpad is almost as bad). This problem isn't specific to Parallels; VirtualBuddy (open source on GitHub) has the exact same problem.