Dictation not supported
I had the same problem using the new dictation feature in a virtual machine. I opened a support ticket with Parallels and they have informed me that diction support is not available in this version of Parallels. I've asked them to put in a future enhancement to support it as it is a core feature of mac os. Please also log a formal enhancement request, the more of us that ask for the feature, the sooner they will provide support!