So, I reached out to Parallels support and they had me do this - and it worked
Thank you Vashish!
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We would recommend you to update your current Windows 11 virtual machine to 24H2 and test if the issue still persists.
First, ensure that you back up your Windows virtual machine before proceeding with the steps outlined as per this KB article :
https://kb.parallels.com/en/4859 or
https://kb.parallels.com/8827
1. Download the .ISO image file from Microsoft website :
https://www.microsoft.com/en-us/software-download/windows11arm64
2. After successfully downloading the Windows .ISO image file, start your Windows 11 virtual machine and mount the Windows installation .ISO file inside it, following the instructions in this KB article :
https://kb.parallels.com/8638
3. Once you have successfully mounted the Windows installation image file inside your Windows 11 virtual machine, you will need to run the setup file located within the image in the "In this PC" Window.
4. Press Command + E on your keyboard to open the "Quick Access" File Explorer window, then select "DVD Drive" from the left pane.
5. Double-click the "Setup" file to begin the upgrade to 24H2.
Click to expand...