Is Touch ID supported in macOS VMs?

As the title, Is Touch ID supposed to work in macOS Sequoia virtual machine?
If so how do you enable it?
Clearly macOS in the VM is not detecting a fingerprint sensor because the Setting which is normally "Touch ID & Password" is shown as "Login Password"
I see a lot of links saying it does, but think they relate to windows in a VM.
Thanks

 

Is this something in the que to develop? My organizations global policy no longer allows Macs without Touch ID to access corporate networks. Not having Touch ID has rendered my Parallels useless for my application.