I reached out to tech support and they provided the answer that worked for me:
"Thank you for contacting the Parallels Support Team. We appreciate your time and effort in contacting us and we will do our best to respond in a timely manner.
The error "No AMD graphics driver is installed" occurs on systems with AMD Radeon software installed but lacks any AMD graphics chip. For Parallels Desktop virtual machines, only the MacOS has direct access to the Radeon card and Parallels relies on it's own driver for graphics acceleration. The only case where this software is required is if you are running Windows off a bootcamp partition.
We have some steps you can try to resolve this issue. Before proceeding please create a snapshot of the virtual machine by clicking on the Parallels icon on the Mac menu bar, click on Action - Take a Snapshot, then click on Ok. This will create an image of your current virtual machine which we can use in case we need to revert it to a previous state. If you are running Windows in Parallels from a Bootcamp partition, you can ignore this step.
If you are running Windows solely under Parallels Desktop, you can try to uninstall the AMD Radeon software listed under Programs and Features. You can access Programs and Features by following the steps below:
1. Hold down the command key or windows key and press the R button.
2. Type the command below and press Ok:
appwiz.cpl
3. Locate any entries related to AMD Software / AMD Radeon, select and click uninstall.
4. Restart the Windows virtual machine to check if you are still getting the same error message.
If you are running Windows from BootCamp, your option is to either:
A. Ignore the popup as this will retain the drivers for the AMD Radeon Pro 5500M when you are running Windows natively under Bootcamp and will not affect the performance of the virtual machine aside the popup that shows up on startup.
B. Uninstall the AMD Radeon software. This may affect how you use Windows under bootcamp. You can try the steps below to uninstall the AMD Software:
1. Hold down the command key or windows key and press the R button.
2. Type the command below and press Ok:
appwiz.cpl
3. Locate any entries related to AMD Software / AMD Radeon, select and click uninstall.
4. Restart the Windows virtual machine to check if you are still getting the same error message.
If these steps did not resolve your issue or you have further concerns or question you can reply to this email."