Mac OS failing to complete installation on

Hello, I am trying to add a mac OS guest using the default option to download the image. I have also tried downloading the image (ipsw) and starting installation that way. Both options have the same result.

I turned on advanced logging, but it does not seem to change the log output. It is very general and vague about the failure. I included the relevant portion below. I'm using an Apple M3 Pro chip and Sequoia 15.2. Parallels is Version 20.2.0 (55872)

Log:
01-30 09:05:49.637 F /macvm:7565:12068/ Installation progress : Fract(%17.00), Units(17/100), Finished(0), Cancelled(0), Kind((null)), Est(0)
01-30 09:05:50.381 F /macvm:7565:12068/ Installation progress : Fract(%18.00), Units(18/100), Finished(0), Cancelled(0), Kind((null)), Est(0)
01-30 09:05:50.382 F /macvm:7565:12068/ Installation progress : Fract(%18.00), Units(18/100), Finished(0), Cancelled(0), Kind((null)), Est(0)
01-30 09:06:08.918 F /macvm:7565:12068/ Installation failed: An error occurred during installation. Installation failed.
01-30 09:06:08.919 F /StateMachine:7565:12068/ VM state(VmStateInstalling): enqueued 'VmLocalCmdKill'(20005) command
01-30 09:06:08.919 F /StateMachine:7565:12093/ VM state(VmStateInstalling): delay 'VmLocalCmdKill'(20005) command
01-30 09:06:08.919 F /StateMachine:7565:12093/ VM state(VmStateInstalling): changed to VmStateStopped
01-30 09:06:08.919 F /StateMachine:7565:12093/ VM state(VmStateStopped): delay 'VmLocalCmdKill'(20005) command
01-30 09:06:08.919 F /StateMachine:7565:12093/ SARE state(SaReState::Start): enqueued 'Terminate'(6) command
01-30 09:06:08.919 F /macvm:7565:12093/ Cancelling installation