I solved this for the latest version of Parallels Desktop - v16.3.2-50531 - and got it to work on windows 10 VM and display the network adapter and connect to the internet! It took 10hrs! of fiddling around but finally it worked

. I know the Windows file system inside out. With a risk of revealing my age, I have been using Windows thoroughly since Windows 95 and its infamous blue screen of death. Back then Windows 98 was my favourite OS till XP came and knocked it to oblivion

. On the contrary, I am new to Mac - this being my first Mac and also my first year working on a Mac. So in Mac I have only one month! experience

Naturally, I gravitate to working on Windows more and more than on the MAC side and I have many of my favourite tools on the Windows side of the OS. And just a question, how do you guys get around the confusion of Command and Control! And how do you deal with no PageUp, PageDown and no separate buttons for Backspace and Delete functions? One month in and I still mix the keys like crazy.
Enough rambling
Parallels Version 16.3.2-50531 comes with the ability to suspend and resume the Windows OS which is sadly missing in v16.3.1-50393. This ability to suspend and resume windows is a super huge improvement. I can't, in good conscience, just downgrade and leave this superb feature aside. Plus I like newer versions of software. As you point out, there is no guarantee that the next release will solve this. We may be stuck on version 16.3.1 ad infinitum.
So I had to try and fix it on the newer version. After I downgraded and it worked, I simply upgraded again by running the newer dmg and it failed connecting the network adapter. Okay, Expected. I downgraded again by simply running the old dmg and strangely (and sadly), it failed connecting the network adapter in Windows too. I was back to square one - stuck and boxed.
After trying everything short of deleting the Windows VM - I can't just delete my Windows VM for I have spent hours installing large apps and tools there so I can't simply get rid of them and start all over again - I got it to work.
I figured out that copying this specific dll, drvstore.dll, the one with a 2MB file size to the Windows System32 folder and then reinstalling the Parallels Tools in the Windows side by clicking on the top menu of Actions then "Reinstall Parallels Tools" when windows is opened solves the problem.
So here are the specifics, logic behind the method I used and how I got the Parallels Windows Adapter working on the newer version of Parallels Desktop on Mac M1.
First, after upgrading to the newer version, open windows, login, then hover the mouse at the top bar to show the menu. Click on
Actions then
Reinstall Parallels Tools. If it installs till 100% and restarts, you just may have solved your issue. In my case, it failed to install at around 57%. Rebooting and trying multiple times did not work. Downloading the Windows version of the installer and installing it did not solve the missing adapter issue for me.
Having ascertained that I cannot install Parallels Tools using the Actions menu, I did the following steps:
1. Open the Windows folder, then the INF folder. I.e. C:\Windows\INF
2. Search for oem.inf. Several files will turn up. Open notepad and reposition it such that you can drag
a single oem
x.inf file into it. Start with oem0.inf. Read its contents. What we are searching for is one with the header as below:
===
;Copyright (c) 2008-2019 Red Hat Inc.
;Copyright 2013-2020 Parallels International GmbH
;
;Module Name:
; netkvm.inf
;
; VirtIO Ethernet Adapter
====
In my case the file was oem1.inf
3. Right click on the file that you found above and press install. It should install silently without any errors. In my case, it raised an error. It was this error that was key to solving the issue. In my case the error raised was:
"
The code execution cannot proceed because drvstore.dll was not found..."
4. If this is the same error you are getting, then proceed below. If not either post here the error that you are getting or google the error to see common solutions.
5. Move to the Windows folder and Search for drvstore.dll in your windows folder.
6. Several results will show up. Most will have a file size below 1mb. I copied the one with 2mbs and pasted it in C:\Windows\System32. Its location was: C:\Windows\WinSxS\arm64_ ...
7. Repeat steps 1, 2 and 3 above. It should work without any errors.
8. Now click on
Actions then
Reinstall Parallels Tools. It should complete the installation.
9. Restart and Viola! The network adapter will work on Windows 10 with the newest version of Parallels Desktop.
If you encounter any errors or get stuck, write here and we might help.
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