I am trying to create a new disk image using VMWare Disk Image format (vmdsk) but I am getting this error:

and when pressing on the Details button I am getting:
PRL_ERR_DISK_NOT_IMPLEMENTED
Normal Parallels image disk can be created on the same location without problem. What am I missing ?
Parallels 18.1, MacOS Ventura
and when pressing on the Details button I am getting:
PRL_ERR_DISK_NOT_IMPLEMENTED
Normal Parallels image disk can be created on the same location without problem. What am I missing ?
Parallels 18.1, MacOS Ventura