I figured out how to get this to work. Seems that the guest macOS VM sets to using a DHCP. If you change it to be on the bridge network created by parallels on the host it works. So here are the steps:
1) on host machine, determine the bridge10x network that the macOS is attached to. Run ifconfig from the terminal. Mine was bridge101 (my bridge100 corresponds to my windows VM, there is probably a prlctl command that will tell you what is what):
bridge101: flags=8863<UP,BROADCAST,SMART,RUNNING,SIMPLEX,MULTICAST> mtu 1500
.....
inet 10.37.129.2 netmask 0xffffff00 broadcast 10.37.129.255
.....
2) copy 10.37.129.2 (your's may be different)
3) in the macOS VM, open settings->network->ethernet click details, click TCP/IP. Change configure IPv4 to Manual. Change IP address to 10.37.129.3 (add 1 to the number above). Set the router to 10.37.129.2.
Note: Do not update the config.ini with Network.Type=2 as suggested above for this solution. Your network should be set to shared for this to work correctly.
-gigs