Parallels Desktop 19.4.3 cannot start Windows 11 ARM VM on MacBook Air M5

Subject: Parallels Desktop 19.4.3 cannot start Windows 11 ARM VM on MacBook Air M5 - "Destination CPU is incompatible with source one"

Hello, I am using Parallels Desktop 19.4.3 build 54993 on a MacBook Air with Apple M5.

Environment:
- Mac model: MacBook Air
- Model Identifier: Mac17,3
- Chip: Apple M5
- Memory: 16 GB
- macOS: 26.5 build 25F71
- Architecture: arm64
- Parallels Desktop: 19.4.3 build 54993
- Guest OS: Windows 11 ARM
- VM BIOS type: efi-arm64
- Hypervisor type: Apple

Issue:
After installing Windows 11 ARM through Parallels Desktop, the VM cannot start. The UI shows a generic error saying the virtual machine cannot be started.

The VM log repeatedly shows:
Destination CPU is incompatible with source one
Monitor config initialization failed
Failed to set VM configuration
PRL_ERR_VM_POWER_ON_FAILED

Troubleshooting already tried:
1. Quit and reopened Parallels Desktop
2. Rebooted macOS
3. Reinstalled Parallels Desktop 19 using the official Install.app from the DMG
4. Confirmed Parallels Service is running after reinstall/reboot
5. Updated Parallels Desktop 19.4.1 to 19.4.3
6. Tried changing VM CPU from auto 4 cores to fixed 2 cores
7. Tried changing VM RAM from auto 6 GB to fixed 4 GB
8. Disabled Adaptive Hypervisor
9. The same error still occurs

Question:
Is Parallels Desktop 19.4.3 officially compatible with Apple M5 Macs and macOS 26?
If yes, please provide a fix or workaround for this "Destination CPU is incompatible with source one" error.
If no, please confirm whether upgrading to the latest Parallels Desktop version is required for Apple M5 support.