Panic(CPU...) in host macOS (Monterery 12.2) when running Parallels (v17 Windows 10 pro)

Hello,
I need help, I've taken multiple steps to resolve and none were successful.

Environment:
* Macbook Pro 13, 2020, Monterey 12.2
* Parallels 17.1.1 hosting Windows 10 Pro

Issue:
* Every morning I return to a crass log (posted below)
* I've also noticed I occasionally lose internet connection in the Guest OS yet the Host OS can still use Zoom?

Attempts to Resolve:
* I've flashed PRam and NVRam
* TimeMachined all of mac contents, reformatted and reinstalled OS, restored Time Machine (excluding system folder)
* Disabled Wifi and only use ethernet.

Here is the crash log I received this morning...

panic(cpu 6 caller 0xffffff80145049ad): userspace watchdog timeout: no successful checkins from WindowServer in 120 seconds
service: logd, total successful checkins since load (37221 seconds ago): 3723, last successful checkin: 0 seconds ago
service: WindowServer, total successful checkins since load (37191 seconds ago): 3707, last successful checkin: 120 seconds ago
service: remoted, total successful checkins since load (37221 seconds ago): 3721, last successful checkin: 0 seconds ago
service: opendirectoryd, total successful checkins since load (37221 seconds ago): 3722, last successful checkin: 0 seconds ago

Panicked task 0xffffff9057c3a060: 3 threads: pid 98: watchdogd
Backtrace (CPU 6), panicked thread: 0xffffff99f06b4000, Frame : Return Address
0xffffffd04574b6c0 : 0xffffff8011085ffd
0xffffffd04574b710 : 0xffffff80111e6035
0xffffffd04574b750 : 0xffffff80111d5803
0xffffffd04574b7a0 : 0xffffff8011025a60
0xffffffd04574b7c0 : 0xffffff80110863cd
0xffffffd04574b8e0 : 0xffffff8011085b86
0xffffffd04574b940 : 0xffffff80119164a6
0xffffffd04574b9b0 : 0xffffff80145049ad
0xffffffd04574b9c0 : 0xffffff8014504600
0xffffffd04574b9e0 : 0xffffff801188a33d
0xffffffd04574ba30 : 0xffffff80145039bb
0xffffffd04574bb60 : 0xffffff801189460c
0xffffffd04574bcc0 : 0xffffff801118d0b4
0xffffffd04574bdd0 : 0xffffff8011061048
0xffffffd04574be60 : 0xffffff8011077a8d
0xffffffd04574bef0 : 0xffffff80111b8f7e
0xffffffd04574bfa0 : 0xffffff8011026246
Kernel Extensions in backtrace:
com.apple.driver.watchdog(1.0)[0E41330C-797B-3F73-A333-04EFB1F20DAC]@0xffffff8014502000->0xffffff8014504fff

Process name corresponding to current thread (0xffffff99f06b4000): watchdogd
Boot args: chunklist-security-epoch=0 -chunklist-no-rev2-dev

Mac OS version:
21D49

Kernel version:
Darwin Kernel Version 21.3.0: Wed Jan 5 21:37:58 PST 2022; root:xnu-8019.80.24~20/RELEASE_X86_64
Kernel UUID: <redacted before posting to forum>
KernelCache slide: 0x0000000010e00000
KernelCache base: 0xffffff8011000000
Kernel slide: 0x0000000010e10000
Kernel text base: 0xffffff8011010000
__HIB text base: 0xffffff8010f00000
System model name: MacBookPro16,2 (Mac-<redacted before posting to forum>)
System shutdown begun: NO
Hibernation exit count: 0

System uptime in nanoseconds: 37225995300684
Last Sleep: absolute base_tsc base_nano
Uptime : 0x000021db5a39f84d
Sleep : 0x0000000000000000 0x0000000000000000 0x0000000000000000
Wake : 0x0000000000000000 0x000000053cff49fd 0x0000000000000000
Zone info:
Foreign : 0xffffff802675f000 - 0xffffff802676c000
Native : 0xffffff8057b0b000 - 0xffffffa057b0b000
Readonly : 0xffffff85247d7000 - 0xffffff86be16b000
Metadata : 0xffffffdc1cd89000 - 0xffffffdc3d09d000
Bitmaps : 0xffffffdc3d09d000 - 0xffffffdc4909d000
last started kext at 90744461570: @filesystems.smbfs 4.0 (addr 0xffffff7faa5a5000, size 483328)
last stopped kext at 287579880459: >IOPlatformPluginLegacy 1.0.0 (addr 0xffffff7faa21b000, size 36864)
loaded kexts:
com.parallels.kext.netbridge 17.1.1 51537
com.parallels.kext.usbconnect 17.1.1 51537
com.parallels.kext.hypervisor 17.1.1 51537
com.parallels.kext.vnic 17.1.1 51537
@filesystems.smbfs 4.0
>AGPM 127
>!APlatformEnabler 2.7.0d0
>X86PlatformShim 1.0.0
@filesystems.autofs 3.0
@fileutil 20.036.15
>AudioAUUC 1.70
>!AHIDALSService 1
>!ATopCaseHIDEventDriver 5020.1
>!AUpstreamUserClient 3.6.8
>!AGFXHDA 140.1
>!AGraphicsDevicePolicy 6.4.12
>!ABridgeAudio!C 200.8
@AGDCPluginDisplayMetrics 6.4.12
>pmtelemetry 1
|IOUserEthernet 1.0.1
>usb.!UUserHCI 1
>!A!IICLGraphics 18.0.4
>!AHV 1
>!ADiskImages2 126.60.3
>!AThunderboltIP 4.0.3
>!A!ISlowAdaptiveClocking 4.0.0
>!ABacklight 180.4
>!A!IPCHPMC 2.0.1
>BridgeAudioCommunication 200.8
>!AAVEBridge 6.1
>!AMCCSControl 1.14
>!A!IICLLPGraphicsFramebuffer 18.0.4
>usb.!UHostBillboardDevice 1.0
>BCMWLANFirmware4387.Hashstore 1
>BCMWLANFirmware4378.Hashstore 1
>BCMWLANFirmware4377.Hashstore 1
>BCMWLANFirmware4364.Hashstore 1
>BCMWLANFirmware4355.Hashstore 1
>!AFileSystemDriver 3.0.1
@filesystems.tmpfs 1
@filesystems.lifs 1
@filesystems.hfs.kext 582.60.2
@BootCache 40
@!AFSCompression.!AFSCompressionTypeZlib 1.0.0
@!AFSCompression.!AFSCompressionTypeDataless 1.0.0d1
@filesystems.apfs 1933.80.3
>!A!II210Ethernet 2.3.1
>!ABCMWLANBusInterfacePCIeMac 1
@private.KextAudit 1.0
>!ASmartBatteryManager 161.0.0
>!AACPIButtons 6.1
>!ASMBIOS 2.1
>!AACPIEC 6.1
>!AAPIC 1.7
@!ASystemPolicy 2.0.0
@nke.applicationfirewall 402
|IOKitRegistryCompatibility 1
|EndpointSecurity 1
@Dont_Steal_Mac_OS_X 7.0.0
@kec.!AEncryptedArchive 1
>driverkit.serial 6.0.0
@kext.triggers 1.0
>!AActuatorDriver 5430.21
>!AHIDKeyboard 228
>!AMultitouchDriver 5430.21
>!AInputDeviceSupport 5400.30
>!AHS!BDriver 5020.1
>IO!BHIDDriver 9.0.0
>!A!ILpssUARTv1 3.0.60
>!A!ILpssUARTCommon 3.0.60
>!AOnboardSerial 1.0
>!AGraphicsControl 6.4.12
|IO!BSerialManager 9.0.0
|IO!BPacketLogger 9.0.0
|IO!BHost!CUSBTransport 9.0.0
|IO!BHost!CUARTTransport 9.0.0
|IO!BHost!CTransport 9.0.0
>IO!BHost!CPCIeTransport 9.0.0
|IOAVB!F 1010.2
@plugin.IOgPTPPlugin 1000.11
|CSR!BHost!CUSBTransport 9.0.0
|Broadcom!BHost!CUSBTransport 9.0.0
|Broadcom!B20703USBTransport 9.0.0
>!AIPAppender 1.0
>!UAudio 414.7
|IOAudio!F 300.10
@vecLib.kext 1.2.0
>!AAudioClockLibs 100.9.1
>!UMergeNub 900.4.2
@!AGPUWrangler 6.4.12
|IOSlowAdaptiveClocking!F 1.0.0
>!ABacklightExpert 1.1.0
|IONDRVSupport 593
>!ASMBus!C 1.0.18d1
>X86PlatformPlugin 1.0.0
>IOPlatformPlugin!F 6.0.0d8
|IOAccelerator!F2 462.4.1
@!AGraphicsDeviceControl 6.4.12
|IOGraphics!F 593
>usb.IOUSBHostHIDDevice 1.2
>!AThunderboltPCIUpAdapter 4.1.1
>!AThunderboltDPOutAdapter 8.5.1
>usb.cdc.ecm 5.0.0
>usb.cdc.ncm 5.0.0
>usb.cdc 5.0.0
>usb.networking 5.0.0
>usb.!UHostCompositeDevice 1.2
>usb.!UHub 1.2
>!AThunderboltDPInAdapter 8.5.1
>!AThunderboltDPAdapter!F 8.5.1
>!AThunderboltPCIDownAdapter 4.1.1
>!AHPM 3.4.4
>!A!ILpssI2C!C 3.0.60
>!A!ILpssI2C 3.0.60
>!A!ILpssDmac 3.0.60
>!ABSDKextStarter 3
|IOSurface 302.11.1
@filesystems.hfs.encodings.kext 1
>!AXsanScheme 3
|IOEthernetAVB!C 1.1.0
>!ABCMWLANCoreMac 1.0.0
|IOSerial!F 11
|IO80211!F 1200.12.2b1
|IOSkywalk!F 1.0
>mDNSOffloadUserClient 1.0.1b8
>IOImageLoader 1.0.0
>usb.!UVHCIBCE 1.2
>usb.!UVHCICommonBCE 1.0
>usb.!UVHCI 1.2
>usb.!UVHCICommon 1.0
>!AEffaceableNOR 1.0
>!AOLYHALMac 1
>corecapture 1.0.4
|IOBufferCopy!C 1.1.0
|IOBufferCopyEngine!F 1
|IONVMe!F 2.1.0
>usb.!UHostPacketFilter 1.0
|IOUSB!F 900.4.2
>!AThunderboltNHI 7.2.8
|IOThunderbolt!F 9.3.3
>usb.!UXHCIPCI 1.2
>usb.!UXHCI 1.2
>!AEFINVRAM 2.1
>!AEFIRuntime 2.1
>!ASMCRTC 1.0
|IOSMBus!F 1.1
|IOHID!F 2.0.0
|IOTimeSync!F 1000.11
|IONetworking!F 3.4
>DiskImages 493.0.0
|IO!B!F 9.0.0
|IOReport!F 47
$quarantine 4
$sandbox 300.0
@kext.!AMatch 1.0.0d1
|CoreAnalytics!F 1
>!ASSE 1.0
>!AKeyStore 2
>!UTDM 532.40.7
|IOUSBMass!SDriver 209.40.6
|IOSCSIBlockCommandsDevice 452.60.2
|IO!S!F 2.1
|IOSCSIArchitectureModel!F 452.60.2
>!AMobileFileIntegrity 1.0.5
$!AImage4 4.2.0
@kext.CoreTrust 1
>!AFDEKeyStore 28.30
>!AEffaceable!S 1.0
>!ACredentialManager 1.0
>KernelRelayHost 1
|IOUSBHost!F 1.2
>!UHostMergeProperties 1.2
>usb.!UCommon 1.0
>!ABusPower!C 1.0
>!ASEPManager 1.0.1
>IOSlaveProcessor 1
>!AACPIPlatform 6.1
>!ASMC 3.1.9
|IOPCI!F 2.9
|IOACPI!F 1.4
>watchdog 1
@kec.pthread 1
@kec.Libm 1
@kec.corecrypto 12.0