Parallels Desktop for Mac 16.1.2 kernel extensions vs. system extensions

I'm on a 16" MBP running Big Sur and I was under the impression that Parallels Desktop 16 was supposed to use system extensions instead of kernel extensions. My machine shows a few kernel extensions that are loaded. Is there a way to fix this? I have tried to uninstall and reinstall and that doesn't do it, it will still install the kernel extensions. Thanks.