Mac DNS fails when Parallels is in Bridged mode - workaround

I was having trouble getting networking on both my M1 Mac (Ventura 13.1) and my Windows 11 guest:

• When I used Shared networking, the Windows guest couldn't access the internet.
• When I used Bridged networking, the Mac host DNS failed.

In Bridged mode, I tried turning off Little Snitch, but Mac DNS still failed.
Little Snitch is not listed in this networking KB article, but it's like the software listed: https://kb.parallels.com/128853

But adding my local router as a Mac DNS server worked. (Both my DHCP DNS servers are outside my local network.)

This is strange, because LittleSnitch shouldn't be filtering anything when it's off, and it doesn't affect bridged mode in other products like VMWare Fusion. It's also strange that it only impacts DNS.

 

I also needed to set a custom MTU on my WiFi for some websites to work.
It's in System Settings > Network > Wi-Fi > Details > Hardware.

I set it to 1436, which is the largest allowed by Ventura.