No Option in Installation Assistant to install Monterey (or any macOS)

I'm using an M1 MBPro with Parallels 17 Desktop for Mac Pro Edition. I would like to set up a VM for Monterey so I can begin testing, however, the Installation Assistant does not offer me the choice of any Mac OSes. My Google searches say that it should be there but I have been unsuccessful in finding out how to install it there if it's not an available option.

Thanks in advance for your assistance!

 

Thanks, Michael!

 

I have a similar problem, I'm on macOS Monterey (12.0.1) using Parallels Desktop 17 for Mac (v17.1.0-51516). My MacOS was a clean install after upgrading from Big Sur and using System Preferences Erase All Contents and Settings. I now want to create a VM and there is not an option in the Free Systems section of the Installation Assistant to Install a MacOS.