Code:
1) Close Parallels completely
2) In Terminal, type : sudo nano /Library/Preferences/Parallels/network.desktop.xml (this will open the Terminal text editor "nano")
3) Type your admin password to access the file
4) Locate this line <usekextless>-1</usekextless> it could be also value 1 and replace whatever value there with 0, so you should have <usekextless>0</usekextless>
5) Press Ctrl+O to ask for a save, then Ctrl+X to close the editor
In Terminal, type : sudo nano /Library/Preferences/Parallels/dispatcher.desktop.xml
find <usb>0</usb> and change 0 to 1
again Press Ctrl+O to ask for a save, then Ctrl+X to close the editor
6) Close Terminal and open Parallels like normal, your VM should load like on Catalina and before :)