If the VM you used in Parallels Desktop 16 was running on an Intel Mac, then you need to create a new Windows VM as per KB https://kb.parallels.com/125375.
You can migrate the data as outlined in KB https://kb.parallels.com/125344.
If your previous Mac is an Apple silicon Mac, then your VM would simply run on the new one.
If the VM you used in Parallels Desktop 16 was running on an Intel Mac, then you need to create a new Windows VM as per KB https://kb.parallels.com/125375.
You can migrate the data as outlined in KB https://kb.parallels.com/125344.
If your previous Mac is an Apple silicon Mac, then your VM would simply run on the new one.