Torchlight II keeps freezing

I have been trying to play Torchlight II (through Steam) on two VMs - one running Windows 7 and one Windows 8.
The game worked perfectly (under Windows 7) before the last Parallels update - now it locks up when you attempt to choose a quest, causing the VM to reboot either version of Windows.
Doubt if it has anything to do with Torchlight/Steam as the same thing happens on both VMs and it worked perfectly before the last Parallels update.
I have tried removing the local files and having Steam reinstall the game on both VMs but no help.
Any suggestions?
 
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