Unable to create El Capitan Guest OS

DwightB

Bit poster
I am using Parallels Desktop 12 running in OS X 10.11.6 and want to create an OS X VM.

After using File -> New... and selecting "Install OS X 10.11.6" using the recovery partition, the installation seems to work, and OS X starts. It then quickly goes to the Apple Logo / progress bar screen. About 1/2 way through progress it switches to a screen with slashed zero. Nothing can coax this to fully boot.

So how do I get El Capitan installed?

--DwightB
 
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