Parallels Virtualbox Conversion error

Hi everyone -

Former Virtualbox user here, attempting to convert my VDI from VirtualBox over to Parallels on a new M2 Macbook Air.
I'm getting an error that reads "Not enough free disk space. Required: 53.34 GB, available 31.42 gb.
Worth noting that the Required space is the size of my existing Windows VM that I want to use with Parallels.
I have over 100 GB free space on my drive on the Mac Air computer.

Any advice/guidance would be greatly appreciated!

Thanks in advance,

- Bill Schmidt