macOS Monterery Beta 8 - Unable to download and create VM using standard procedure

Using the standard procedure to create a macOS VM, it looks like one of the processes is core dumping:

09-30 13:49:22.538 F /HostUtils:909:fced/ Process crashed. pid 6133, cmd '"/Applications/Parallels Desktop.app/Contents/MacOS//prl_macvm_create" "/Users/jerry/Parallels/{c01316c5-7efe-428e-96eb-169bd5bbc38c}/UniversalMac_12.0_21A5534d_Re
store.ipsw" "/Users/jerry/Parallels/{c01316c5-7efe-428e-96eb-169bd5bbc38c}/macOS 12.macvm"'
09-30 13:49:22.539 F /disp:909:fced/ Download appliance: cannot extract VM from '/Users/jerry/Parallels/{c01316c5-7efe-428e-96eb-169bd5bbc38c}/UniversalMac_12.0_21A5534d_Restore.ipsw' archive !
09-30 13:49:22.539 F /disp:909:fced/ Error occurred while download appliance with code [0x80041508][PRL_ERR_APPLIANCE_CANNOT_EXTRACT_VM]
09-30 13:49:22.539 F /disp:909:fced/ Task '22Task_DownloadAppliance' with uuid = {66020638-c803-40e7-bc1b-da295a3ad81f} was finished with result PRL_ERR_APPLIANCE_CANNOT_EXTRACT_VM (0x80041508) )
09-30 13:49:22.540 F /prl_client_app:5255:e605/ localhost: received result for [DspCmdInstallAppliance]. RC = [PRL_ERR_APPLIANCE_CANNOT_EXTRACT_VM]

When running the above command manually:
$ "/Applications/Parallels Desktop.app/Contents/MacOS//prl_macvm_create" "/Users/jerry/Parallels/macOSVM.macvm/macosParallels.ipsw" "/Users/jerry/Parallels/macOSVM.macvm/macosParallels.ipsw"
2021-09-30 16:21:03.327 prl_macvm_create[12548:188717] Internal Virtualization error. Unable to load restore image at path "/Users/jerry/Parallels/macOSVM.macvm/macosParallels.ipsw".
Abort trap: 6
$ ll /Users/jerry/Parallels/macOSVM.macvm/macosParallels.ipsw
13G -rw-r--r-- 1 jerry staff 13G Sep 30 16:18 /Users/jerry/Parallels/macOSVM.macvm/macosParallels.ipsw

mysystem

Operating System macOS 12.0 (21A5534d) :
Platform Macmini9,1 (Darwin 21.1.0)
CPU Model Apple M1
Serial Number XXXXXXXXXXXXXX
CPU Cores 8 {8 threads}
System Memory (GB) 16.00
Chipset Model Apple M1