Upgrading to Monterey stopped Windows 11 running on M1 MacBook Pro

Hi,
I'm new to Parallels but I successfully installed the Windows Insider preview of Win 11 on my M1 MacBook Pro. All was working great until I updated the mac to Monterey a couple of days ago. Since then Windows 11 freezes on launch and I get the spinning pinwheel. It's also incredibly difficult to kill the Parallels processes. It usually takes a full power off/power on.

I've completely deleted the VM, removed all traces of Parallels from the Home/User/Library folders and subfolders. I've also removed any preferences from the ~/Library/ folders and subfolders.

A completely fresh install of Parallels and Windows 11 ARM does the same thing again (freezes, pinwheel etc...). Any suggestions as to what's going on or is this an issue with the latest build of Parallels?

Thanks in advance!