Kali Linux 2021.2 White/Gray Screen after Parallels tools installation

Hi,
I first tried installing Kali Linux 2021.1 as a Debian based OS since it was not recognised by Parallels, then after reading https://www.kali.org/docs/virtualization/install-parallels-guest-vm/ I tried installing it as Ubuntu.

But regardless of how I install the OS it stops working after installing Parallels tools. The installation works fine, the system restarts, the login screen looks fine. But after login I get a gray screen and the CPU usage goes up and down but nothing else happens.

Is there anyone who has managed to successfully install Parallels Tools on Kali Linux 2021.1?
The version of Parallels I am running is 16.5.0 and I am running it on an MBP with Big Sur 11.4.

 

After reading posts in Kali Linux forums I turned off 3D acceleration and that solved the issue. But, before installing Parallels Tools 3D acceleration was working just fine.