I contacted support and they gave me a solution that appears to be working (for the past 2 days). Here is what they told me to do (For more details, kindly consult the following Knowledge Based article: https://kb.parallels.com/116141):
1. Shut down your virtual machine.
2. Go to your virtual machine's configuration > Options > Full Screen.
3. Click on "Advanced..." > select "Keep ratio" from the Scale to fit screen drop-down menu > Click Ok
4. Start your virtual machine in Full Screen mode.
5. Right-click on the Windows desktop > Display Settings > using the Display Resolution drop-down menu, select the desired resolution.
6. Close the configuration window and restart Windows.
Screen resolution on Windows will remain according to the settings you selected.
In order to avoid seeing black bars on top-bottom or left-right sides of the Windows screen, please perform the following steps to force Windows screen to get stretched to fill the whole Mac screen:
1. Shut down the virtual machine.
2. Go to your virtual machine's configuration > Options > Full Screen.
3. Click on "Advanced..." > select "Stretch" from the Scale to fit screen drop-down menu > Click Ok
4. Close the configuration window and start the virtual machine.
I did not have to perform the second part since my display resolution between the Mac and Windows are the same and there are no black bars across my screen.