Repeated KMODE_EXCEPTION_NOT_HANDLED Error

I have had a recurring issue that I am seeking help with. I have Parallels Desktop for Mac 16 Standard Edition. I am using a MacBook Pro with M1 Pro chip. Whenever I create a virtual machine running Windows 11 ARM, as soon as a software update is needed that requires a restart, and the restart is initiated, I receive a BSOD loop. The error message is always: KMODE_EXCEPTION_NOT_HANDLED. I have not figured out any way to resolve this. When I do a total re-install of Windows 11 ARM, the problem eventually just happens again whenever a software update requiring a restart is installed and a restart is initialized. Any help would be greatly appreciated!

 

I'm having this same issue. By chance did you ever find a solution that worked? If so, any advice would be greatly appreciated. Thank you!