I also had this EXACT same issue as described in the initial post and actually independently discovered the same "dd" workaround (after many, many hours of frustration and panic). I came here looking to spread my wisdom and discovered there are no new ideas

Also I could have saved myself hours...
For the Parallels team - first of all, this issue still exists in Parallels 15. Second, maybe these additional observations will help track down the problem.
I have iStat menus and observed that prl_disp_service would peg at 30MB/s disk read; this was when everything went to hell. Killing prl_disp_service wouldn't clear the 30MB/s read, it would just move it to kernel_task or hide its source from Activity Monitor/iStat altogether. CPU load for prl_disp_service was slightly elevated but nowhere near pegged. Also, 30MB/s is nowhere near pegged for disk I/O on my machine either. I tried capturing a problem report to submit to Parallels but it was unable to finish generating it.
After (stupidly) trying to reclaim disk space before moving my VM to an external drive - and having the disk reclaimer fail with the same 30MB/s lockup and system fault, ultimately freezing the entire host OS - I could no longer start my VM at all. No reports of corruption, just the same hangup. But the disk resizer is a different process and Windows is not running.
I would also add that the failure of Parallels to launch after the first reboot was the Parallels application not the virtual machine. But maybe it does some scan or something if it was force-quit while a VM was running that triggered the issue?
I would speculate that the corruption may have resulted from expanding the disk image size. The issue started after (during?) a Windows update, but I had also just installed SolidWorks (many GB), and had recently updated parallels from 15.1.4 to 15.1.5. At first, rolling back to 15.1.4 seemed to help but it didn't last.
Macbook Pro (Retina, 15-inch, Mid 2015)
Mac OS Mojave 10.14.6
Parallels 15.1.4 or 15.1.5 (hangup/unresponsive Mac occurred on both)
Windows 10 19042.928