Just upgraded to 17.0.1 from 17.0.0 and any new Ubuntu Server 20.04(and other versions) VMs I create hang on boot until I temporarily attach an image to the CDROM, after which it boots right up. I thought it might be a number of things but couldn't understand why it was happening until I decided to try an old VM I created with the previous version of Parallels and saw it didn't have the issue even though it was the same install image. Currently I decided to revert back to the previous version of Parallels using Time Machine and I no longer have this problem when creating new machines.
After further review it seems to be the updates to Ubuntu that are the source of the problem. I used a working old VM and executed apt update; apt full-upgrade and now it is experiencing the same problems as the new VMs. Will try latest version of Parallels next and see if I can install a VM without the updates to see if it has the same effects.
It seems there is nothing wrong with the Parallels update from 17.0.0 to 17.0.1. However the problem has occurred after Ubuntu 20.04.2 LTS (GNU/Linux 5.4.0-65-generic aarch64) and is present in Ubuntu 20.04.3 LTS (GNU/Linux 5.4.0-84-generic aarch64)
Similar issue on x86 based system. After a reboot, using an older kernel enabled me to reboot and install the new version of the parallels tools (on the older kernel). Same issue at next reboot, but booting on older kernel (from grub menu, shown at 2nd reboot) worked.
try the solution in this thread https://forum.parallels.com/threads/lvm-uninitialized-unrandom-read.354693/